VanEck Rare Earth/Strategic Metals ETF Rises on Tungsten’s 500% Rally
Tungsten prices have surged about 500% over the past year, driven by ore grade declines, stricter environmental regulations, and Chinese export controls that have pushed global inventories to critically low levels. With analysts forecasting ongoing supply deficits into 2026, REMX’s exposure to strategic-metal producers positions it to benefit from sustained price strength.
1. Tungsten Price Surge
Tungsten prices have risen roughly 500% year-over-year, outpacing gold and copper gains as demand for high-temperature and wear-resistant applications climbs. This dramatic rally has drawn investor attention to strategic metals ETFs, driving a 2.6% rise in the VanEck Rare Earth/Strategic Metals ETF.
2. Supply Crunch Drivers
A combination of declining ore grades, tightening environmental regulations, chronic underinvestment in new mines and processing capacity, and export constraints from China has pushed inventories to critically low levels. These factors have created a sustained supply crunch that shows no signs of easing.
3. Implications for REMX Exposure
REMX holds shares in companies engaged in the mining, processing and refining of strategic metals, including those tied to tungsten. As tungsten prices soar, revenue prospects for these producers improve, enhancing the ETF’s net asset value and income potential for shareholders.
4. Future Supply Solutions
Analysts forecast continued supply deficits into 2026, with new output years away due to permitting and financing hurdles. While expanding Chinese mine capacity faces regulatory limits, early high-grade intercepts at Viking Mines’ Linka project (~1% WO₃) and ONGold’s Monument Bay (17.4 m at 0.51% WO₃) offer long-term hope for increased tungsten production.