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A major milestone: Binding offtake agreement with defense-linked buyers
In a bold move that ties critical minerals to national defense, a leading tungsten producer with operations in Portugal and soon South Korea, has secured a game-changing offtake agreement that positions it as a cornerstone of Western tungsten independence—and a rising star on the global investment radar.
Almonty Industries (ASX:AII) has taken a significant step forward in securing its future revenue stream and strategic relevance. In early May 2025, the company announced a binding three-year offtake agreement with Tungsten Parts Wyoming (TPW), a U.S. defense contractor, and Metal Tech, a tungsten processor based in Israel.
Under the agreement:
- TPW will purchase a minimum of 40 metric tons of tungsten oxide per month, to be used in critical defense applications such as missiles, drones, and ordnance systems.
- Metal Tech will process the tungsten oxide into metal powder in either Israel or the U.S., tailored to TPW’s specifications.
- The deal includes a competitive hard-floor price with no cap on the upside, offering Almonty both downside protection and exposure to rising tungsten prices.
Deliveries are expected to begin once Almonty reaches commercial production at its Sangdong mine in South Korea, projected for 2027–2028.
A Western answer to Chinese dominance
China currently controls approximately 90 per cent of global tungsten production, a dominance that poses a strategic risk to Western industries. Almonty’s Sangdong mine, one of the largest tungsten deposits outside China, is poised to become a critical alternative source.
With geopolitical tensions rising and raw materials increasingly weaponized, Almonty’s conflict-free supply from Portugal, South Korea, and Spain offers a secure and stable alternative. The company is already seeing demand outstrip supply, with Lewis Black, Almonty’s chief executive officer noting that many interested buyers will have to wait their turn.
“This binding offtake agreement represents a significant milestone for Almonty, securing both predictable revenue through a defined hard-floor price and long-term demand tied directly to US defense programs,” CEO Black explained in a statement. “Beyond commercial certainty, the agreement ensures that our tungsten oxide will serve a strategic, high-value end-use – reinforcing Almonty’s position as the key upstream supplier to the defense supply chain of the US and its allies. It reflects our broader commitment to aligning production with national security priorities, while delivering sustainable value to my fellow shareholders and is another customer of Almonty who is happy to commit to our hard-floor pricing terms as a condition of supply.”
NASDAQ listing: Unlocking U.S. capital markets
Almonty is preparing for a NASDAQ listing, a move that could significantly enhance its visibility and valuation. The company has already secured shareholder approval for a share consolidation, a key step toward meeting NASDAQ’s listing requirements.
Why NASDAQ matters
- Increased liquidity and access to a broader investor base.
- Enhanced credibility among institutional investors and U.S. defense stakeholders.
- Potential for re-rating: Almonty’s current market cap is around USD 500 million, while MP Materials (NYSE:MP), a comparable rare earths producer, is valued at USD 4 billion.
The listing is expected to be a major catalyst for the stock, especially as U.S. investors seek exposure to critical minerals aligned with national security interests.
“Listing on NASDAQ provides access to an extensive global investor base including many institutional investors, which are many times prohibited from investing on various other exchanges. This increased visibility and credibility can materially enhance liquidity and facilitate more streamlined capital raising activities,” Hunter Diamond, CFA Diamond Equity Research said.
“The recent offtake agreement is a significant event for shareholders, as this agreement increases the predictability of revenue and cash flows -key drivers of investor confidence,” he continued. “The acceptance of a floor pricing model in the critical defense supply chain of the U.S. signals the confidence the buyer has in the long-term delivery capacity and quality of the asset.”
Stock performance and outlook
- Current price: C$2.35
- 1-year return: +262.5 per cent
- Since 2020: +337.74 per cent
With production at Sangdong imminent, a NASDAQ listing on the horizon, and a strategic offtake agreement in place, Almonty is in a stable position for continued growth.
A strategic raw material, a smart investment
Almonty Industries is more than a mining company – it’s a strategic asset in the West’s effort to secure critical mineral independence. The recent offtake agreement with TPW and Metal Tech points to its role in the defense supply chain, while the upcoming NASDAQ listing could unlock significant shareholder value.
For investors, the message is clear: those who control tungsten will control the future of defense and technology. Almonty offers a rare opportunity to invest early in a company at the intersection of geopolitics, national security, and resource scarcity.
Disclosure: Diamond Equity Research LLC is being compensated by Almonty Industries, Inc. for producing research materials regarding Almonty Industries, Inc. and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. Publicly disclosed fees in accordance with SEC rule 17(b) can be found on our disclosure page.
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