China’s hunt for US tungsten escalates global critical minerals race

{"text":[[{"start":9.95,"text":"Chinese buyers have been quietly stockpiling tungsten from scrap yards across the US, driving up prices of a crucial defence industry metal amid an escalating global race for critical minerals, US sellers told the FT."}],[{"start":22.4,"text":"Since early 2025, Chinese scrap traders have been seeking tungsten throughout the US, prompted by a shortage outside China caused by declining supply and intense demand from the aerospace, weapons and tools industries. The effort has set off a bidding war with American buyers and calls to ban sales of a critical national security resource to overseas buyers. "}],[{"start":44.95,"text":"“We’ve got to stop the export back to China,” said Ryan McAdams, chief executive of Texas-based tungsten recycler and refiner Amermin. “This is a secret war that nobody’s talking about.”"}],[{"start":58.45,"text":"There are no US prohibitions on sales of tungsten to buyers who plan to export it. A White House official said Donald Trump’s administration is committed to rebuilding the US domestic minerals industry and ensuring American supply chain security."}],[{"start":72.4,"text":"John Moolenaar, a Republican congressman from Michigan and chair of the House select committee on China, told the FT: “It is no surprise China is trying to dominate the market” for tungsten. “We must do more to make sure we have a reliable supply.” "}],[{"start":86.45,"text":"Sellers said they were fielding calls from Chinese buyers looking for the material, while American buyers said they were being outbid by Chinese rivals willing to pay as much as five times the usual price."}],[{"start":99.4,"text":"“When I’m going into scrap yards or my suppliers that I’ve dealt with for years, they’re telling me the Chinese are coming in,” said Kent Vandiver, who owns a metal recycling company in Dallas, North Carolina. "}],[{"start":null,"text":"

"}],[{"start":110.35000000000001,"text":"During a visit to a Texas supplier, Vandiver said he was told Chinese buyers had been there “20 mins ago” offering “quite a bit more”. An Oklahoma supplier gave a similar account, saying they had promised: “Whatever price you get, we’ll pay more.”"}],[{"start":127.45000000000002,"text":"Tungsten scrap commonly comes from worn-out industrial tools such as drill bits and mining equipment. It can be crushed and chemically processed back into tungsten powder or carbide for use in new machinery and tools."}],[{"start":140.3,"text":"The shortage has been triggered by Beijing imposing export restrictions on it and an array of other critical minerals in early 2025 and the country cutting mining quotas. China accounts for more than half of global mined and refined tungsten supply and about half of demand. "}],[{"start":157.20000000000002,"text":"The metal is among those to have captured the attention of the White House. As part of an accelerating race for resources, the US government is poised to provide up to $1.6bn for a planned tungsten mine in Kazakhstan — which is being developed by a group that plans to merge with a shell company backed by Donald Trump Jr and Eric Trump."}],[{"start":176.70000000000002,"text":"China has for years banned the import of tungsten scrap on environmental grounds. But material in other forms, such as used tungsten carbide drill bits, is regulated differently and may be imported."}],[{"start":null,"text":""}],[{"start":189.45000000000002,"text":"Scrap could also be processed elsewhere, with material then flowing into China. Data compiled by critical minerals research group Project Blue shows a rise in exports of tungsten scrap this year from the US to the Philippines, Taiwan, Vietnam and South Korea, recycling hubs."}],[{"start":205.35000000000002,"text":"However, a lag in the processing and shipping of the material meant that customs data was not yet available to show whether there had been an increase in imports into China from those countries this year, they cautioned. "}],[{"start":217.45000000000002,"text":"The Chinese buyers — a mix of scrap traders, recyclers and manufacturers — describe their industry as intensely competitive. They said they saw the US as a prime hunting ground, due to its size and because it is home to many of the world’s leading manufacturers of high-quality machinery."}],[{"start":233.3,"text":"“Finding reliable and high-quality suppliers is extremely difficult,” said Liang Chen, who scours the world’s scrap yards looking for large used tungsten drill bits. “I hope to build trust with American sellers face to face,” he said. After shipping the drill bits back into China, they are either refurbished for reuse or recycled. "}],[{"start":252.3,"text":"Nick Stevens, owner of JC Metals, a scrap recycling company, says Chinese buyers will call and try to persuade him to deliver tungsten to third parties within the US, Canada and Dubai — whose names and addresses are withheld — who then send it to China. "}],[{"start":268.90000000000003,"text":"“They’ll say, ‘meet in this Home Depot parking lot’ to buy over $20,000 worth of this stuff,” he said."}],[{"start":null,"text":""}],[{"start":275.3,"text":"Tungsten is broadly used in military applications, including in bullets and missiles. Traders said stocks were already low before the Iran war and that companies do not typically hold large stores of the metal. "}],[{"start":287.8,"text":"There was “no availability” outside China of the so-called “intermediate” products that manufacturers need — mined ore that has been processed — said Quentin Lamarche, chief executive of trading group TechMet SCM."}],[{"start":302.6,"text":"The price of US tungsten has risen by more than 200 per cent since May 2025, while tungsten scrap has risen 350 per cent, according to Argus Media. "}],[{"start":312.6,"text":"Some have speculated that ageing tungsten mines in China are becoming less productive, leading the country to look further afield for new sources."}],[{"start":null,"text":""}],[{"start":321.5,"text":"China issued a new standard for recycled tungsten in 2024, which analysts said could reopen the door to scrap imports, though there is no firm sign its import ban has been lifted."}],[{"start":332.2,"text":"“If China lifts its import ban on scrap, that will spell disaster for the ex-Chinese markets” given the relative lack of tungsten mines outside China has made scrap an important feedstock for other nations, said Luke Adriaans from Project Blue. "}],[{"start":347.9,"text":"Some argue a US scrap export ban could reduce reliance on China, but others say America lacks the processing capacity to make use of it."}],[{"start":357.04999999999995,"text":"Cliff Nance, chief executive of Tungco, called a ban a “terrible idea”: “We don’t have the ability to turn all of that scrap into a finished product.”"}],[{"start":373.8999999999999,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1780446097_3859.mp3"}