Almonty Industries' $112.5M Equity Raise: Strategic Fundraising to Secure Tungsten Supply Chains Amid Geopolitical Tensions

Almonty Industries has raised $112.5 million through an upsized underwritten offering of 18 million common shares at $6.25 per share, with an additional 30-day over-allotment option for 2.7 million shares according to the announcement. This fundraising is not merely a capital infusion but a strategic move to position the company as a cornerstone in the global tungsten supply chain, a critical mineral increasingly vital to U.S. and allied defense strategies. As geopolitical tensions and supply constraints reshape the market, Almonty's projects and partnerships align with a growing demand for secure, non-Chinese tungsten sources.

Geopolitical Demand and Supply Constraints: A Boon for Tungsten Producers

Tungsten's role in defense applications-armor-piercing munitions, missile systems, and radiation shielding-has intensified its strategic importance. The U.S. Pentagon has allocated up to $1 billion to stockpile critical minerals, including tungsten, while the Defense Logistics Agency seeks 1,700 tonnes of tungsten ores and concentrates. China, which controls over 80% of global tungsten supply, has imposed stricter export licensing, triggering market volatility and price spikes. These actions underscore the fragility of the current supply chain and the urgency for diversification.

The U.S. is the largest importer of tungsten for defense, accounting for 32% of global imports, followed by Germany and Japan. With the REEShore Act banning Chinese tungsten in military equipment by 2026 and China's export restrictions tightening, the market is primed for non-Chinese producers. The global tungsten defense market is projected to grow at 4.5% annually, reaching $1.71 billion by 2033, creating a compelling long-term tailwind for companies like Almonty.

Almonty's Strategic Projects: Filling the Supply Gap

Almonty's $112.5 million raise will directly fund exploration and development at the Gentung Browns Lake Tungsten Project in Montana, expansion at the Panasqueira Mine in Portugal, and exploration at the Sangdong Molybdenum Project in South Korea. The Gentung project, expected to reach production by late 2026, will deliver 140,000 MTUs annually, a critical addition to U.S. domestic supply. This timing aligns with the REEShore Act's 2026 deadline, positioning Almonty to meet immediate demand from defense contractors.

The Sangdong Mine in South Korea, nearing production, is anticipated to supply approximately 40% of global non-China tungsten output. Combined with Almonty's operations in Portugal and Spain, the company is building a diversified, low-cost production platform. These projects are not just geographically strategic but also aligned with U.S. and European efforts to reduce reliance on Chinese supply chains.

Partnerships and Policy Alignment: Strengthening Market Position

Almonty's recent partnership with American Defense International (ADI) underscores its focus on the U.S. defense sector. This collaboration, coupled with the company's redomiciliation to the U.S. and membership in the Critical Minerals Forum-a U.S. Department of Defense initiative-positions it to capitalize on government contracts and policy-driven demand. Additionally, Almonty has secured a government relations firm to enhance its visibility in Washington, D.C., further solidifying its alignment with national security priorities.

The company's acquisition of the Gentung Browns Lake project marks a transformative step in establishing a fully integrated, Western-based tungsten platform. By expanding its U.S. footprint, Almonty is addressing a critical gap in the supply chain as the U.S. seeks to replace Chinese imports with domestic and allied sources.

Investment Rationale: A Supply-Constrained Market with High Stakes

Almonty's equity raise is a calculated response to a market defined by scarcity and geopolitical urgency. With China's dominance in refining high-purity tungsten and the U.S. procurement rules banning adversarial sourcing, the company's projects offer a rare combination of scale, timing, and strategic alignment. The Gentung project's 2026 production timeline directly addresses the REEShore Act's requirements, while Sangdong's output will fill a significant portion of non-China supply.

Moreover, Almonty's cost structure and established infrastructure in Europe and Asia provide operational advantages. The company's ability to leverage its global footprint to meet U.S. and European demand positions it as a key player in a market where supply constraints are likely to persist. With the U.S. defense budget and critical minerals initiatives driving demand, Almonty's capital raise is not just a funding event but a strategic pivot to secure a dominant position in a high-stakes, supply-constrained sector.

Conclusion

Almonty Industries' $112.5 million equity raise is a masterstroke in a market where geopolitical tensions and supply constraints are reshaping the tungsten landscape. By funding projects that align with U.S. and allied defense priorities, the company is positioning itself as a critical supplier in a sector defined by scarcity and strategic urgency. For investors, this represents an opportunity to capitalize on a company that is not only navigating but actively shaping the future of the tungsten supply chain.