U.S. Tungsten Supply Chain Faces Land Rights Hurdle as China Dominates
Event summary
- China mined 79% of the world's tungsten in 2025, with the U.S. producing none since 2015.
- New DFARS rules effective January 1, 2027, restrict tungsten from China, Russia, Iran, and North Korea at the mine or ore stage.
- Western Star Resources acquired 14 lode claims and a 25-year surface use agreement for its Eagle Point Tungsten Project in New Mexico.
- Tungsten concentrate prices surged from $750–$850 per metric tonne unit in early 2026 to $2,500–$2,800 since May 29, 2026.
- China limited tungsten exports to 15 authorized firms in 2026 and 2027, tightening supply for global buyers.
The big picture
The U.S. faces a strategic challenge in securing domestic tungsten supplies amid China's near-monopoly. While regulatory measures aim to restrict imports, the real bottleneck lies in land rights and permitting delays for domestic projects. Western Star Resources' acquisition of surface rights at Eagle Point highlights the critical need for early-stage land consolidation to avoid project stalls. The surge in tungsten prices and China's export restrictions further intensify the urgency for the U.S. to develop alternative supply chains.
What we're watching
- Permitting Delays
- Whether Western Star Resources can advance its Eagle Point project faster than peers by securing surface rights early.
- Price Volatility
- How sustained high tungsten prices will impact the viability of U.S. domestic mining projects.
- Regulatory Impact
- The effectiveness of DFARS restrictions in reducing U.S. reliance on Chinese tungsten supplies.
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