US company secures strategic tungsten supply from Vietnam

The US-based Elmet Group has acquired approximately five percent of the Vietnamese company Masan High-Tech Materials in a deal valued at roughly 125 million US dollars. As part of the agreement, Masan has committed to supplying approximately 1,000 tons of pure tungsten annually for at least eight years. This volume represents about one-third of Vietnam's projected 2025 mine production.

Tungsten is a critical metal for the defense industry, used in rocket components and armor-piercing ammunition due to its high density. While China controls nearly four-fifths of global tungsten production, Vietnam provides about one-sixth of the remaining supply.

The deal has raised concerns in Brussels regarding European access to Vietnamese tungsten, particularly for Germany. As Europe seeks to strengthen its defense capabilities following Russia's invasion of Ukraine, competition from the United States for these strategic raw materials may disrupt existing supply chains.