Almonty Industries (Almonty) has entered into an offtake agreement with US-based defence contractor, Tungsten Parts Wyoming (TPW) and Israeli tungsten refiner, Metal-Tech, to supply tungsten for use in the US defence sector.

On 7 May, Almonty, a Canada-based tungsten producer with assets in Portugal, South Korea, and Spain, announced a three-year binding offtake agreement with TPW and Metal-Tech to supply tungsten for US defence applications. As per the agreement, Almonty will deliver a minimum of 40tpm of tungsten concentrate, sourced from its Panasqueira mine in Portugal, or alternatively, from its Sangdong Project in South Korea, which is expected to come online later this year. TPW will ship the concentrate to Metal-Tech for conversion to tungsten metal powder at its facility in Israel. The powder will then be returned to TPW’s plant in Wyoming, USA, for further processing into finished products. All material supplied under this agreement will be exclusively used in US defence applications, including missiles, drones, and ordnance.

According to Almonty, shipments will commence once it begins producing concentrate in commercially saleable quantities. The concentrate will be sold at a fixed floor price of US$330/mtu, subject to grade-specific adjustments as outlined in the agreement, with no cap on potential price increases. The initial term of the agreement is three-years from the first delivery, with automatic one-year renewals thereafter.

This deal supports Almonty’s goal of becoming a leading supplier of tungsten to the US market, particularly following its recent strategic partnership with American Defense International, a firm that specialises in government relations and business development in Washington, D.C. Additionally, this agreement aligns with initiatives of the USA aimed at reducing reliance on Chinese tungsten for military applications. These include the REEShore Act (2022), which mandates a ban on Chinese tungsten in military equipment by 2026. Through this agreement, Almonty will avoid conflict with the Act and strengthen its position as a key supplier in the US defence supply chain.