August M
A little-known metal is suddenly at the center of global tensions, with prices surging and supply chains under pressure. As geopolitical rivalries intensify, control over key resources is becoming a powerful tool.
One country’s dominance is now reshaping the market.
According to 20minutos, tungsten, a critical material used in weapons, electronics, and industrial tools, has seen its value skyrocket amid rising global demand and export restrictions from China.
The country produces around 79% of the world’s tungsten, giving it significant leverage over supply. Beijing has introduced limits on exports, reducing availability and driving prices sharply higher.
Data cited from Bloomberg and Fastmarkets shows the metal’s price has surged by as much as 520%.
Demand surges
Tungsten’s importance lies in its unique properties, including extreme hardness and resistance to high temperatures.
It is widely used in military equipment such as specialized ammunition and aircraft components, as well as in semiconductors essential for modern electronics.
Rising global tensions and increased defense spending have fueled demand, particularly as conflicts continue to impact supply chains.
Spain’s opportunity
Amid these shifts, Spain is emerging as a potential alternative supplier within Europe.
The European Union has classified tungsten as a critical raw material and is seeking to reduce reliance on external sources, particularly China.
Spain already has a strong position within the EU, with active and planned mining projects. The Barruecopardo mine in Salamanca is among the most significant, while additional developments are underway in regions such as Galicia, Castilla-La Mancha, and Extremadura.
Challenges ahead
Despite the opportunity, expanding production comes with obstacles. Mining projects face environmental concerns and complex approval processes.
The tungsten market is also highly sensitive to political decisions, adding uncertainty for investors and governments alike.
Still, the current situation offers Spain a chance to strengthen its role in global supply chains as demand continues to rise.
Sources: 20minutos, Bloomberg, Fastmarkets
