Vietnamese enterprises solve the problem of global tungsten supply shortage

The global market is concerned that China will restrict the export of Tungsten and Bismuth following the country's move to issue regulations controlling the export of a series of important minerals used in industrial production.

This is an opportunity for Masan High-Tech Materials, a Vietnamese enterprise that owns the world's largest tungsten mine (outside China), to play an important 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 control measures on antimony minerals, effective from September 15. This is the latest move in China's process of restricting exports of important minerals, including gallium, germanium and graphite. China said the export restrictions on antimony - an important metal used in the production of nuclear weapons and electric vehicles - were introduced to protect national interests and security, and to fulfill international obligations such as nuclear non-proliferation.

The move has raised concerns in global markets that China could move to restrict exports of other minerals such as tungsten, bismuth and tantalum - metals that the West relies heavily on for imports from China. Tungsten in particular plays an important role in the military and energy transition technology.

As China tightens its supply of key minerals, the West is forced to seek alternative partners. This is an opportunity for non-Chinese tungsten producers, including Vietnam.

Inside Masan High-Tech Materials factory

Opportunities for global materials 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 rate-cutting cycle that began in June, when the ECB lowered rates for the first time since 2019. The aim of these rate cuts is to stimulate economic growth by making credit more accessible, especially to capital-intensive industries such as manufacturing and mining.

Lower interest rates are also encouraging increased investment in manufacturing and materials, increasing production capacity at a time when global demand for these metals is rising. This shift allows non-Chinese suppliers to better compete with Chinese companies, especially as China continues to impose export restrictions on critical minerals.

The rising demand for tungsten and other critical metals is closely linked to the global green transition. As investment in renewable energy increases, there will be a greater need for stable and diversified supply of materials such as tungsten. As an essential component in wind turbines, electric vehicle batteries and solar panels, tungsten has become a key mineral mineral in the global energy transition.

Modern mineral processing plant at Nui Phao polymetallic mine

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

MHT owns a globally integrated tungsten production platform, from mining, raw material procurement to processing, through research and development (R&D), gathering the world's leading mining experts, using advanced production technology and 10 years of tungsten recycling experience from Germany, to put into production and supply high-tech tungsten materials to the global market.

MHT currently supplies 30% of the world’s tungsten (outside China), with 70% of its customers being companies in the world’s top 50 by market capitalization. Many of MHT’s partnerships have been in place for more than two decades. The company’s extensive supplier network also spans over 30 countries, with 200 active suppliers, underscoring MHT’s importance and position in the global materials market.

Suppliers outside of China, especially in Europe, North America and Southeast Asia, are facing a huge opportunity in the face of the global “thirst” for this strategic material. Favorable economic conditions and increasing market demand promote diversified material supply, providing many choices for manufacturing enterprises and key industries globally.

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