Plansee Group and Almonty Extend Agreement to Ensure Supply Security

Breitenwang/Reutte, July 23, 2026 – The Plansee Group has extended its long-term off-take agreement with Almonty Industries for tungsten concentrate from the Sangdong Mine in South Korea ahead of schedule, adding six years to bring the total term to 21 years. The agreement is a key component in ensuring the long-term security of tungsten supply in Europe and the U.S. and underscores the close collaboration between the two companies.

Tungsten is one of the critical raw materials for numerous industrial applications, particularly in the tooling industry as well as in the high-tech, energy, mobility, and defense sectors. In light of geopolitical uncertainties and an increasingly strained global raw materials market, establishing reliable, conflict-free supply chains outside of China is becoming increasingly important. 

A Boost for Supply Security

“The extension of our purchase agreement with Almonty sends an important signal regarding the long-term security of the tungsten supply in Europe and the U.S.,” says Karlheinz Wex, Chairman of the Executive Board of the Plansee Group. “With Sangdong, we will have another source of tungsten concentrates outside of China going forward. The agreement strengthens the resilience of our supply chains for many years to come and increases the agreed-upon supply volume. Ultimately, this ensures the supply of tungsten products to our customers at all stages of the value chain.”

Pricing Arrangement Ensures Economic Viability

As part of the contract extension, additional pricing provisions were agreed upon. These provisions supplement the existing minimum price, which supports the economically sustainable operation of the Sangdong mine even in the event of future fluctuations in the price of tungsten. In this way, both partners are laying the foundation for long-term investment and supply security. 

“A stable, independent, and sustainable supply of raw materials requires long-term partnerships that endure even during volatile market phases,” says Karlheinz Wex. “The agreed-upon pricing mechanism supports the mine’s long-term viability and helps secure the supply of tungsten well into the 2040s.” The price of tungsten has risen sharply in recent times. Since China’s export restrictions on tungsten took effect in February 2025, the price has increased more than sevenfold.

Recycling as Another Pillar

The development of mines, such as Sangdong, is a key component of supply security, but requires long lead times – in some cases more than ten years. “Mines alone are therefore not a short- or medium-term solution for the U.S. and Europe,” says Karlheinz Wex. “To ensure timely supply security and, above all, to alleviate the tungsten shortage, we need supply chains that rely not only on long-term off-take agreements with mines but, above all, on regional recycling loops.” 

The Plansee Group, the largest tungsten supplier outside of China, covers 92 percent of its tungsten needs through recycling, while 70 percent of the tungsten used worldwide is still not recycled.

How the Plansee Group Processes Tungsten

The Plansee Group processes and distributes tungsten in the form of raw, semi-finished, and finished products. The Ceratizit business area manufactures wear-resistant tools from tungsten carbide (hard metal) for the trades, machining, and industrial applications. Plansee HPM processes tungsten metals and heavy metals into products and components for the high-tech industry, often pushing the boundaries of what is technically and physically feasible.

Captions:

Karlheinz Wex, Chairman of the Plansee Group’s Executive Board. Photo: Andi Mayr

Tungsten powder is the raw material for many high-tech products. Photo: Plansee Group