Mitsubishi Materials has announced a significant ¥10 billion (approx. $63 million) investment to expand its tungsten recycling capabilities in Japan and Europe.
The timing of this decision is no coincidence; it's a direct reaction to a perfect storm in the tungsten market. First, China, which produces over 80% of the world's tungsten, implemented export controls in early 2025 and later announced plans to restrict which companies can export. This move immediately tightened global supply. Second, as a result, the price of Ammonium Paratungstate (APT), a key tungsten intermediate, surged by over 90% in early 2026. This dramatic price increase made recycling tungsten from scrap not just environmentally sound, but also highly profitable, shortening the payback period for a large investment like this.
Beyond the immediate market dynamics, a powerful policy tailwind is supporting this shift. The European Union's Critical Raw Materials Act (CRMA), which came into force in 2024, sets ambitious targets for 2030: sourcing 25% of strategic raw materials from recycling and ensuring no more than 65% comes from a single non-EU country. Similarly, the US-Japan 'Action Plan for Critical Minerals' aims to create stable supply chains, even exploring tools like price floors. These government initiatives provide a safety net, reducing the financial risks and justifying the long-term capital expenditure for companies like Mitsubishi.
This investment isn't an isolated event but a calculated step in Mitsubishi's broader corporate strategy. The company had already laid the groundwork by acquiring H.C. Starck Tungsten in late 2025, which gave it a strong recycling and processing footprint in Europe and North America. The new investment builds on this foundation, aligning with the company's long-term vision to achieve a 100% tungsten recycling rate and build a robust circular economy value chain for critical materials. It's a strategic pivot from supply chain dependence to supply chain resilience.
[Glossary]
- APT (Ammonium Paratungstate): An intermediate chemical compound of tungsten, which is a crucial step in the process of refining tungsten ore into pure metal.
- CRMA (Critical Raw Materials Act): An EU regulation aimed at securing a sustainable and resilient supply of critical raw materials for Europe's economy and green transition.
- Resilience: In this context, the ability of a supply chain to prepare for and adapt to unexpected events, and to recover from disruptions while maintaining continuity of operations.