The U.S. Has ZERO of This Critical Metal (And China Just CUT Supplies!)

Summary

In this video, the host discusses the US's alarming dependence on China for tungsten, a critical mineral essential for defense, aerospace, and industrial technologies. With China controlling over 80% of the global tungsten supply, geopolitical tensions could disrupt global supply chains, causing prices to surge. The US government is aiming to regain control over its critical minerals, but with no active tungsten mines domestically, this will take time. The video highlights American Tungsten Corp as a potential key player in the US's tungsten production, offering an investment opportunity in this strategic sector.

Takeaways

• 😀 The U.S. is heavily dependent on China for tungsten, a crucial mineral used in military, aerospace, and industrial technology.
• 😀 Tungsten has the highest melting point of any metal and is vital for applications like armor-piercing rounds, missile systems, and high-temperature industrial tools.
• 😀 China produces over 80% of the world’s tungsten and controls most of the processing capacity, giving it significant leverage over global supply.
• 😀 The U.S. does not have a single active tungsten mine, leaving it vulnerable to supply chain disruptions.
• 😀 Geopolitical tensions, such as the 2024 China gallium export controls and the 2022 Russia-Ukraine war, have shown how quickly prices for critical minerals can surge when supply chains are threatened.
• 😀 Historical events, like the 2010 rare earth export ban by China, demonstrate how vulnerable global markets are to sudden disruptions in supply.
• 😀 The U.S. government has acknowledged the issue and signed an executive order in 2025 aimed at restoring domestic production of critical minerals, including tungsten.
• 😀 While the U.S. is working on policy changes to secure its supply chains, building new mines and production facilities will take time.
• 😀 American Tungsten Corp, a company with plans to revive a past-producing tungsten mine in the U.S., could become the first U.S.-based tungsten producer in decades.
• 😀 The U.S. Department of Energy classifies tungsten as a critical material, underscoring its strategic importance for national security and advanced industries.
• 😀 Despite U.S. interest in domestic tungsten production, the market remains reliant on China for refining and processing, highlighting the importance of domestic mining solutions.

Q & A

What critical mineral is the US dependent on China for, according to the video?

The US is highly dependent on China for tungsten, which is essential for military weapons, aerospace technology, and advanced manufacturing.

Why is tungsten such an important material for the US?

Tungsten is vital due to its high melting point, density, and its use in demanding applications like armor-piercing rounds, missile systems, aerospace components, and industrial tools.

What percentage of global tungsten production does China control?

China produces over 80% of the world's tungsten and controls most of its processing capacity.

What happens when supply chains for critical materials like tungsten are disrupted?

When supply chains for critical materials are disrupted, such as with tungsten, prices can surge dramatically, as seen in past events with gallium and palladium.

What recent event in December 2024 caused a surge in gallium prices?

In December 2024, China imposed export controls on gallium, a critical material used in semiconductors and defense applications, causing prices to spike.

What does the US government's executive order signed in January 2025 aim to address?

The executive order, titled 'Unleashing American Energy,' aims to restore US production of critical minerals, including tungsten, to strengthen domestic supply chains and reduce reliance on adversarial states.

Why is it difficult to rapidly restore US production of tungsten?

Building new mining operations for tungsten takes time, and despite growing government support, the US still lacks an active tungsten mine domestically.

What company is highlighted as a potential solution to the US's tungsten supply problem?

American Tungsten Corp (OTC ticker DMFR) is presented as a potential solution, aiming to become the first US-based tungsten producer by restarting a former major tungsten mine.

How does China's dominance in rare earths and tungsten affect global markets?

China's control over the production and processing of rare earths and tungsten gives it significant leverage over global markets, and a sudden disruption in supply can lead to price surges and geopolitical instability.

What challenges does the US face in securing its own tungsten supply?

The US faces challenges such as the absence of operational tungsten mines on its soil, slow production transitions, and environmental and regulatory barriers in developing new mining operations.