Tungsten prices have reached record highs due to China's tightening export controls and increased military demand. The metal is used in aerospace and defence equipment due to its extreme heat resistance and hardness. China, which dominates the global tungsten market, imposed new export restrictions in 2025 and cut mining quotas that year. In February, China prohibited exports of dual-use items to 20 Japanese entities that it claims supply Japan's military. The automotive sector is currently the largest consumer of tungst, but rising EV adoption may curb consumption.