Almonty Industries' Strategic US Tungsten Acquisition: A Timely Play in a Geopolitically Driven Supply Chain Rebalance

In a bold move to capitalize on the U.S. government's urgent push for critical mineral independence, Almonty Industries has acquired the Gentung-Browns Lake tungsten project in Montana, positioning itself at the forefront of a strategic rebalancing of global tungsten supply chains. This acquisition, announced in October 2025, marks the first U.S. tungsten mine to enter production in over a decade and aligns with Washington's broader efforts to reduce reliance on China, which currently dominates 80% of global tungsten processing capacity, according to Mining Technology. With geopolitical tensions intensifying and demand for tungsten in defense and semiconductor applications surging, Almonty's move is not just a commercial play-it's a calculated bet on a near-term supply-side revolution.

Geopolitical Imperative: Tungsten as a Strategic Commodity

Tungsten's unique properties-extreme hardness and heat resistance-make it indispensable in armor-piercing munitions, missile guidance systems, and high-performance semiconductors. The U.S. Department of Defense (DoD) has identified tungsten as a critical mineral, with plans to phase out imports from adversarial nations by 2027, according to a CarbonCredits article. Almonty's Gentung-Browns Lake project directly addresses this need. By leveraging existing infrastructure, including water rights and processing facilities from the site's prior operation by Union Carbide, the company aims to resume production as early as late 2026, using reconditioned equipment from its Spanish operations to minimize capital outlays, as reported by Mining Technology.

The U.S. government has already signaled its commitment to domestic tungsten revival. In July 2025, the DoD allocated $6.2 million under the Defense Production Act to restart the Pilot Mountain project in Nevada, while Almonty's CEO, Lewis Black, has engaged in supply discussions with the DoD to secure long-term contracts at transparent, market-based prices, according to a Futunn report. These efforts are part of a broader $1.2 billion federal initiative to fund domestic mineral projects and enforce procurement rules that prioritize U.S. and allied sources, as noted by CarbonCredits.

Project-Specific Advantages: Infrastructure, Timing, and Market Positioning

The Gentung-Browns Lake project is uniquely positioned to capitalize on these dynamics. Located in Montana's historic tungsten district, the site previously supplied the U.S. national strategic stockpile and retains critical infrastructure, including a plant permit and mining equipment, according to a Business Wire release. Almonty's strategy to redeploy equipment from its Spanish operations further accelerates timelines, reducing the need for new capital expenditures. While specific reserve estimates for 2025–2026 remain undisclosed, the project's advanced status and existing infrastructure suggest a rapid path to production, with initial output expected to be sold to U.S. processors like Global Tungsten & Powders and Kennametal, according to an AKM report.

This timing is critical. The U.S. has not produced tungsten commercially since 2015, creating a supply vacuum that China has exploited. Almonty's entry into the market coincides with a surge in demand driven by both defense modernization and the green energy transition, where tungsten is used in wind turbine components and electric vehicle tooling. With the DoD's 2027 import ban looming, the company is well-positioned to capture a first-mover advantage in a market where supply is tightening and geopolitical risk is rising.

Broader Strategic Implications: Almonty's Global Footprint and Market Resilience

Almonty's U.S. acquisition is not an isolated move but part of a diversified strategy to become a leading non-Chinese supplier of tungsten. The company's Sangdong Mine in South Korea, set to ramp up production in late 2025, and its Portuguese operations provide a stable base for scaling output. This global footprint insulates Almonty from regional supply shocks and allows it to leverage synergies in processing and logistics.

The investment case is further strengthened by the company's focus on commercial sustainability. Unlike state-subsidized projects in China, Almonty's model relies on market-based pricing and private-sector partnerships, ensuring long-term viability even as geopolitical dynamics shift. This approach aligns with investor preferences for resilient, profit-driven operations in critical minerals.

Investment Thesis: Supply Chain Rebalancing as a Tailwind

For investors, Almonty's Gentung-Browns Lake project represents a rare confluence of geopolitical tailwinds, near-term production potential, and strategic market positioning. The U.S. tungsten market is projected to grow at a compound annual rate of 5% through 2030, driven by defense spending and semiconductor demand, according to CarbonCredits. With Almonty's production expected to come online by late 2026, the company is poised to benefit from both price appreciation and volume growth in a sector where supply is constrained and demand is accelerating.

Moreover, the project's alignment with U.S. national security objectives reduces regulatory and political risks. The DoD's active engagement with Almonty and its willingness to negotiate long-term contracts at transparent prices provide a level of certainty absent in many critical mineral projects. This contrasts sharply with China's opaque pricing mechanisms and export controls, which have historically disrupted global supply chains.

Conclusion

Almonty Industries' acquisition of the Gentung-Browns Lake project is a masterstroke in a high-stakes game of mineral independence. By combining existing infrastructure, strategic timing, and a clear-eyed focus on U.S. defense needs, the company is not just filling a supply gap-it's reshaping the global tungsten landscape. For investors seeking exposure to a sector where geopolitics and economics converge, Almonty offers a compelling, near-term play on a market poised for structural rebalancing.