US Mobilizes $40 Billion for Critical Minerals as Europe Trails on Tungsten

US funding moves beyond conventional subsidies

The United States has mobilized about $40 billion for critical-minerals projects since 2022, according to the Financial Times, widening the policy gap with Europe as governments compete to secure metals used in defense and advanced manufacturing. The European Union has selected 75 strategic projects, but support pledged for 2026 stands at about €6 billion, Wallstreet Online reported, citing the Financial Times.

Washington is combining grants and project support with direct investment. The US Department of Defense agreed to invest $400 million in rare-earth producer MP Materials. This approach treats access to critical materials as an industrial and national-security priority rather than leaving development solely to private capital.

Europe’s Critical Raw Materials Act establishes supply goals and seeks faster permitting. However, the European Court of Auditors has warned that many projects may not reach the EU’s 2030 supply targets in time, according to the Financial Times account cited by Wallstreet Online. Mining projects still require exploration, resource estimates, metallurgical studies, permits, financing and construction before they can supply industry.

Tungsten prices expose the supply pressure

Tungsten is used in carbide tools, aerospace, defense and some semiconductor applications because of its hardness and resistance to extreme temperatures. China has built a dominant position in both mining and processing, while export controls have tightened availability outside the country.

Argus reported on August 20 that European prices for ammonium paratungstate, or APT, remained nearly 500% above their level a year earlier despite a recent correction. APT is a major intermediate product in the tungsten chain, making the increase directly relevant to toolmakers and other European processors. Higher prices create an incentive for alternative supply, but they cannot eliminate the long lead times required to develop mines and processing capacity.

Projects in South Korea and Canada gain relevance

Almonty Industries illustrates the value being assigned to non-Chinese production. The company reported second-quarter 2026 revenue of about C$43 million, up from about C$7.2 million a year earlier, and mine operating earnings of about C$26.1 million. Its Sangdong project in South Korea began processing operations in early July. Once fully ramped up, Phase I is designed to process about 640,000 tonnes of ore annually; an approved second phase could raise capacity to as much as 1.2 million tonnes.

In Canada, Northcliff Resources’ Sisson tungsten-molybdenum project in New Brunswick has been referred to the federal Major Projects Office. Canada is providing C$8.2 million for additional work, while Northcliff says it has received $15 million from the US Department of Defense. The funding links US policy directly with the development of a potential allied tungsten source.

Nearby explorer Adelayde Exploration holds the 9,780-acre Sisson North Tungsten Project and has completed helicopter-borne magnetic, radiometric and VLF surveys. Its location does not prove that an economic deposit exists, and the company remains at an early, speculative stage. The distinction is important for investors: government support can finance studies and accelerate viable projects, but it cannot guarantee a discovery or commercial mine.

For industrial buyers, the central issue is timing. The US is committing capital across producers, processing capacity and earlier-stage projects, while Europe is still coordinating funding and regulation. In a market where APT prices have risen several hundred percent in a year, delays could leave European processors competing for limited non-Chinese material as US-backed supply chains take shape.