# Mitsubishi Materials taps Vietnam tungsten to counter China curbs *The Japanese refiner began commercial shipments from Masan High-Tech Materials on Oct. 8, raising tool prices as Akita and Goslar recycling expansions advance.* **Published:** October 11, 2026 **By:** Yui Kobayashi **Section:** Energy & Critical Minerals — Japan **Format:** Company Watch **Confidence:** high **Source:** https://eastasiabrief.com/energy-minerals/mitsubishi-materials-taps-vietnam-tungsten-counter-china-curbs-649 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - Mitsubishi Materials began commercial tungsten imports from Vietnam on Oct. 8 - Subsidiary Japan New Metals limits customer deliveries to 80% of prior-year volumes - Upgrades at Akita and Goslar will add 3,200 metric tons of recycling capacity by 2029 ![A worker monitors industrial machinery as processed tungsten material pours into a large bulk bag at a manufacturing plant. (AI-generated image)](https://eastasiabrief.com/media/2026-10-10-2748e35c8981.webp) *A worker monitors industrial machinery as processed tungsten material pours into a large bulk bag at a manufacturing plant. (AI-generated image)* Mitsubishi Materials began commercial imports of processed tungsten from Vietnam on Oct. 8, 2026, tapping non-Chinese refining channels to protect its cemented carbide tool manufacturing from Beijing's mineral controls. The Japanese manufacturer took delivery of intermediate compounds to feed domestic cutting tool plants. China currently accounts for more than 80% of global tungsten mine production and dominates the processing of chemical derivatives. Sourcing feedstock from Southeast Asia carries an immediate price penalty against subsidized Chinese material. Mitsubishi Materials informed domestic industrial buyers that it will raise catalog prices across its cemented carbide tool lines to reflect higher raw material costs. Cemented carbide inserts form the core cutting edges used across heavy manufacturing. Japanese automotive factories, aerospace turbine producers and precision electronics fabricators rely on the metal for high-speed machining where heat and wear tolerance are critical. The Vietnamese supply line rests on commercial agreements finalized in May 2024 between Mitsubishi Materials and Masan High-Tech Materials. Under that transaction, the Japanese group acquired German refiner H.C. Starck Holding for $134.5 million. As part of the same transaction, Mitsubishi Materials divested its 10% equity holding in Masan High-Tech Materials. In return, the companies signed a long-term offtake contract covering ammonium paratungstate and tungsten oxide produced in northern Vietnam. Masan operates the Nui Phao polymetallic open-pit mine in Thai Nguyen province. The site represents one of the largest proven tungsten reserves outside China, offering Japanese processors an established extraction and intermediate refining hub. Japanese industrial consumers faced acute supply bottlenecks after China implemented dual-use export control rules on Feb. 4, 2025. The export restrictions delayed customs clearances for specialty alloys, prompting Japanese refiners to draw down safety inventories. The tightening prompted immediate rationing across Japan's domestic supply chain. Subsidiary Japan New Metals announced on Feb. 1, 2026, that it would cap customer order allocations at 80% of prior-year volumes starting with shipments on April 1, 2026. Japan New Metals operates the only integrated commercial tungsten refining facilities in Japan. The subsidiary converts tungsten-bearing industrial scrap into high-purity ammonium paratungstate and carbide powders for domestic toolmakers and defense contractors. To restore processing headroom, Mitsubishi Materials approved an 8 billion yen ($54 million) upgrade on Sept. 9, 2026, for Japan New Metals' Akita plant. The project will expand hydrometallurgical recycling capacity. The Akita investment will double domestic output of ammonium paratungstate from scrap, raising capacity from 1,200 metric tons to 2,400 metric tons per year. The expanded processing facility is scheduled to start commercial operations in April 2029. Japan's Ministry of Economy, Trade and Industry approved the Akita project under the Economic Security Promotion Act. The designation certifies the facility as a national critical-mineral securing plan, qualifying the project for state capital subsidies. Mitsubishi Materials is expanding secondary processing capacity in Europe alongside the domestic effort. On July 31, 2026, the company approved a €50 million ($55 million) capital project at H.C. Starck Tungsten's Goslar plant in Germany. The Goslar investment will raise tungsten scrap recycling capacity from approximately 5,000 metric tons to 7,000 metric tons per year. Construction begins this year, with engineering completion scheduled before the end of 2028. The domestic and European investments serve a broader strategic benchmark. Mitsubishi Materials aims to raise the recycled raw material ratio in its cemented carbide products to 100% by the fiscal year ending March 2031. Recycled material accounted for slightly more than 50% of the group's carbide feedstock in early 2024. Closing that deficit requires both recycled scrap and primary refined intermediates from non-Chinese jurisdictions while new plants undergo construction. The supply shift exposes tooling competitors to similar cost dynamics. Japanese toolmakers Sumitomo Electric Industries and Kyocera face persistent margin compression as they negotiate alternate procurement pathways for tungsten concentrate and sintered carbide inputs. Machine shops across Tokyo, Nagoya and Osaka must absorb the tool price increases or seek alternative alloy coatings. For heavy machinery exporters, switching to secondary suppliers risks precision tolerances during five-axis computer numerical control milling. The Oct. 8 report did not state the contracted shipment volume or the tool price hike, and Mitsubishi Materials has not published a regulatory filing detailing the commercial terms of the Vietnamese cargo. Japan New Metals maintains its 80% allocation limit on customer shipments as global merchant inventories remain tight. The quota will govern deliveries until the Goslar lines commission in 2028 and the Akita expansion enters service in April 2029. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | Vietnam tungsten procurement | domestic carbide tool producers face import cost competition | dual-use export controls push primary refiners out of Japanese supply lines | Mitsubishi Materials absorbs feedstock cost premium, lifts tool prices | aerospace and automotive machining lines face higher carbide tooling costs | ## In this story - **Companies:** Mitsubishi Materials - **Tickers:** 5711.T - **Exposed:** Masan High-Tech Materials - **Policy:** Economic Security, Export Controls - **Impact:** Supply Chain, Pricing, Cost Structure ## Primary sources 1. mmc.co.jp 2. yahoo.co.jp 3. vibetrader.com 4. einnews.com 5. globaleconomicbridge.com --- Cite as: East Asia Brief, "Mitsubishi Materials taps Vietnam tungsten to counter China curbs," October 11, 2026. https://eastasiabrief.com/energy-minerals/mitsubishi-materials-taps-vietnam-tungsten-counter-china-curbs-649