Vietnamese enterprises solve the problem of global tungsten supply shortage

Vietnamese businesses solve the problem of global tungsten supply shortage.

Global markets are concerned about China restricting exports of tungsten and bismuth following the country's move to issue export control regulations on a range of key minerals used in industrial production.

This presents an opportunity for Masan High-Tech Materials, a Vietnamese company that owns the world's largest tungsten mine (outside of China), to play a crucial role in the global strategic materials supply chain.

China restricts exports of key minerals.

On August 14, China's Ministry of Commerce and General Administration of Customs announced the implementation of export controls on antimony, effective September 15. This is a new move in China's ongoing efforts to restrict exports of other key minerals, which previously included gallium, germanium, and graphite. China stated that the export restrictions on antimony – a crucial metal used in the production of nuclear weapons and electric vehicles – were implemented to protect national interests and security, and to fulfill international obligations such as nuclear non-proliferation.

This move has raised concerns in global markets that China may move toward restricting exports of other minerals such as tungsten, bismuth, and tantalum – metals that the West relies heavily on from China. Tungsten, in particular, plays a crucial role in the military and energy conversion technologies.

With China tightening its supply of key minerals, the West is forced to seek alternative partners. This presents an opportunity for tungsten producers outside of China, including Vietnam.

Inside Masan High-Tech Materials factory

Opportunities for global material suppliers

In September 2024, the European Central Bank (ECB) decided to cut interest rates by another 25 basis points, bringing them down to 3.5%. This was the next step in a cycle of interest rate cuts that began in June, when the ECB lowered interest rates for the first time since 2019. The goal of these rate cuts is to stimulate economic growth by making credit more accessible, especially for capital-intensive industries such as manufacturing and materials extraction.

Lower interest rates are also encouraging increased investment in manufacturing and materials, thereby boosting production capacity at a time when global demand for these metals is rising. This shift allows suppliers outside of China to compete more effectively with companies in China, especially as China continues to impose export restrictions on key minerals.

The demand for tungsten and other critical metals is increasing in line with the global green transition. As investment in renewable energy increases, the need for stable and diversified sources of supply for materials like tungsten will grow even larger. As an essential component in the production of wind turbines, electric vehicle batteries, and solar panels, tungsten has become a key metallic mineral in the global energy transition.

Modern mineral processing plant at the Nui Phao multi-metal mine.

In Vietnam, the Nui Phao mine – the world's largest tungsten mine (outside of China), owned by Masan High-Tech Materials (MHT) – currently holds a crucial position in the global supply chain for tungsten and several other key metals.

MHT possesses a globally integrated tungsten production platform, from mining and raw material procurement to processing, through research and development (R&D), bringing together leading mining experts worldwide, utilizing advanced production technology and 10 years of tungsten recycling experience from Germany, to produce and supply high-tech tungsten materials to the global market.

Currently, MHT supplies 30% of the global tungsten (outside of China), with 70% of its customers being companies in the top 50 worldwide by market capitalization. Many of MHT's partnerships have spanned more than two decades. The company's extensive supplier network also spans over 30 countries, with 200 active suppliers, further solidifying MHT's importance and position in the global materials market.

Suppliers outside of China, particularly in Europe, North America, and Southeast Asia, are presented with a huge opportunity amidst the global "thirst" for this strategic material. A favorable economic environment and increasing market demand are driving a diversified supply of materials, offering numerous choices for manufacturing businesses and key industries worldwide.

Source: https://baodautu.vn/doanh-nghiep-viet-giai-bai-toan-thieu-hut-nguon-cung-vonfram-toan-cau-d227189.html