Europe’s tungsten supply chain is emerging as a central pillar of critical raw materials strategy, driven by its role in defence systems, advanced manufacturing and high-performance industrial tooling. The metal is now being positioned alongside rare earths and gallium in Europe’s strategic materials framework, reflecting its importance in sectors ranging from aerospace and automotive production to semiconductors and energy infrastructure.
China Dominance and European Import Exposure
Global tungsten mine output reached around 85,000 tonnes in 2025, with China producing 67,000 tonnes, representing roughly 79% of global supply, according to USGS data. Other producing countries include Vietnam (3,000 tonnes), Kazakhstan (2,400 tonnes), Russia and North Korea (about 2,000 tonnes each), Bolivia (1,700 tonnes), Rwanda (1,300 tonnes), Australia (1,000 tonnes), Austria (840 tonnes), Spain (800 tonnes) and Portugal (700 tonnes).
Within Europe, structural dependency remains high. SCRREEN data show EU tungsten production of approximately 2,100 tonnes per year versus demand of 17,300 tonnes, implying around 88% import reliance between 2016 and 2020. China’s tightening export controls in February 2025, covering eight tungsten-related products, intensified concerns across Western manufacturing supply chains and reinforced tungsten’s classification as a strategic input.
EU Strategic Stockpile Recognition and Policy Shift
The European Union has shortlisted tungsten alongside rare earths and gallium for its first coordinated strategic minerals stockpile under its critical raw materials framework. The inclusion reflects concerns over concentrated supply risk and the importance of tungsten in defence-industrial and high-precision manufacturing systems.
Tungsten is widely used in tungsten carbide cutting and drilling tools across mining, construction, automotive and aerospace industries, as well as in armour-piercing ammunition, penetrators, missile components and heat-resistant military applications.
Hemerdon Mine Restart in the United Kingdom
The most advanced tungsten restart project in Europe is the Hemerdon mine in Devon, United Kingdom, owned by Tungsten West Plc (AIM: TUN). The asset was previously operated by Wolf Minerals from 2015 to 2018 before entering receivership. Tungsten West acquired 100% ownership through its subsidiary structure.
The project carries more than US$300mn of historical investment and is designed as a fully permitted restart operation. The 2025 development plan outlines a US$93mn financing requirement to restart mining operations. Key financial metrics include a post-tax NPV7.5 of US$190mn, IRR of 29.3%, and life-of-mine post-tax cash flow of US$456mn, based on an APT price assumption of US$400/mtu.
The resource base includes 326.8mn tonnes grading 0.12% WO₃ and 0.03% tin, containing 39.7mn mtu WO₃, with reserves of 70.7mn tonnes grading 0.15% WO₃, containing 10.3mn mtu WO₃. At steady-state production, Hemerdon is designed to process 3.5mn tonnes per year, producing approximately 332,000 mtu of WO₃ and 462 tonnes of tin annually, alongside aggregate by-product sales. Tungsten West has indicated the mine could supply more than 20% of global non-China tungsten supply at full capacity.
Commissioning Timeline and Project Financing
The company’s Q1 2026 update targets phased restart, including gravity processing in Q3 2026 and full plant commissioning in Q1 2027. Financing includes a £22.3mn equipment package with McHale Komatsu, up to US$85mn in project debt under due diligence, and £25.5mn cash reserves as of March 2026. Contractors include Duo Group for crushing, screening and ore sorting and Gekko Systems for inline pressure jig technology.
Processing redesign focuses on ore sorting and staged recommissioning to improve recovery rates and reduce waste throughput following earlier operational challenges under Wolf Minerals.
South Korea’s Sangdong Mine and Allied Supply Expansion
Outside Europe, Almonty Industries has restarted the Sangdong tungsten mine in South Korea, with Phase 1 commissioning completed in March 2026. The processing plant is designed for 640,000 tonnes of ore per year, producing approximately 2,300 tonnes of tungsten concentrate annually. Phase 2 expansion, scheduled for 2027, will increase capacity to 1.2mn tonnes of ore per year, doubling output to around 4,600 tonnes of concentrate annually.
Almonty states Sangdong could supply approximately 40% of global tungsten demand outside China, supported by an average grade of 0.51% WO₃ and a projected mine life exceeding 45 years. The company has invested more than US$100mn in redevelopment. Q1 2026 results show US$25.4mn revenue (+221% year-on-year), US$6.1mn adjusted EBITDA, US$9.7mn operating cash flow, and US$259.9mn cash.
Portugal’s Panasqueira and Austria’s Mittersill Operations
Europe’s operating tungsten base includes Almonty’s Panasqueira mine in Portugal, owned via Beralt Tin and Wolfram (Portugal) SA, producing high-grade wolframite concentrates from a mine in operation since the 1890s.
In Austria, Wolfram Bergbau und Hütten AG (Sandvik group) operates the Mittersill scheelite mine, described as Europe’s largest tungsten mine. It contributes approximately 25–30% of European tungsten ore production and forms part of an integrated chain including refining, powder production and recycling. Sandvik has outlined a target of 90% circularity in tungsten supply by 2030, supported by established industrial scrap recovery through cemented carbide recycling streams.
Spain’s Emerging Tungsten Project Pipeline
Spain hosts several advanced tungsten development projects under the EU strategic framework. The El Moto project, operated by Abenójar Tungsten SL, is located in Castilla-La Mancha and has completed a definitive feasibility study. The project is designed to supply around 20% of European tungsten demand once operational.
Resource estimates include 91mn tonnes of tungsten ore and 1.2mn ounces of gold, with WO₃ grades above 0.4%. The gold by-product is expected to improve revenues by more than 15%. The project is seeking approximately €140mn in development financing, with first production targeted around 2027 subject to permitting and funding. The second Spanish asset, La Parrilla, operated by P6 Metals and Iberian Resources Spain, is located in Extremadura. The project focuses on tungsten and tin extraction and processing, with reported resources of approximately 29.8mn tonnes and a redevelopment concept requiring about €30mn in investment.
Supply Chain Role in Defence and Industrial Systems
Tungsten’s industrial importance spans defence manufacturing, aerospace systems, automotive production, oil and gas drilling, semiconductor tooling and advanced engineering applications. It is primarily used in tungsten carbide tools, critical for machining steel, titanium, nickel alloys and composites across multiple industries.
In defence systems, tungsten is used in armour-piercing ammunition, penetrators, missile components and high-density military alloys. Its substitution is limited by performance trade-offs in cost, durability and thermal resistance.
Market Structure and Strategic Positioning
European tungsten projects are increasingly shaped by import dependency and supply concentration risk. China’s dominance of global supply, combined with export restrictions introduced in 2025, has shifted tungsten into strategic procurement frameworks under EU policy. Projects such as Hemerdon, Sangdong, Panasqueira, Mittersill, El Moto and La Parrilla collectively form a fragmented but expanding supply base across Europe and allied jurisdictions. The sector is now positioned within broader industrial security policy, with tungsten embedded in manufacturing chains that underpin defence production, infrastructure development and advanced industrial systems across Europe and allied economies.
