Tungsten powder prices soared by over 10,000 yuan in a single day. The surge in demand for new energy and military industries coupled with tight supply pushed tungsten prices to a record high.
Supply shortages are intensifying
China has implemented quota management for tungsten mining, with the initial quota reduced to 58,000 tons in 2025, a 6.45% year-on-year decrease. Tighter environmental regulations have led to the closure of small and medium-sized mining companies in Jiangxi and Hunan, and the global annual tungsten ore shortage is expected to exceed 30,000 tons.
Demand is booming
The new energy sector is seeing the largest increase in demand: the use of tungsten-copper composite materials in lithium battery current collectors has tripled, and the penetration rate of tungsten filaments in photovoltaic silicon wafer cutting has jumped to 60%. Military orders are also booming, with China's military tungsten product orders surging 42% year-on-year in 2025.
Market chain reactions
Export controls have exacerbated global supply constraints, prompting the EU to launch a tender for 100,000 tons of strategic reserves. This has impacted both upstream and downstream sectors of the supply chain. While a 10% increase in tungsten prices boosts the gross profit margins of leading companies by 2-3 percentage points, high prices are already dampening downstream purchasing appetite.
Looking Ahead
Tungsten prices are expected to remain high in the short term, with the arrival of the peak manufacturing season (September and October) potentially pushing prices higher. In the medium to long term, tungsten resource scarcity and rising mining costs will continue to support prices, with growing demand for new energy providing long-term momentum.
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