Company: ALM
Filing Date: 2025-07-11
Form Type: F-10/A
Source: 0001641172-25-018741
Chunk: 67

Company: Almonty Industries Inc.
Filing Date: 2025-07-11
Form: F-10/A
Chunk 67
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 East Asia security threats (Ministry of Defense, “Overview of FY2023 Budget”, March 2023;
Ministry of Defense, “Overview of FY2024 Budget”, June 2024).

The United Kingdom
is projected to increase its defense spending from £53.9 billion (approx. US$68.3 billion) in FY2023/24 to £59.8 billion
in FY2025/26 (His Majesty’s Treasury, “Autumn Budget 2024”, October 2024). In February 2025, the UK government
committed to raising defense expenditures to 2.5% of GDP by 2027, with an ambition to reach 3% in the following Parliament, subject to
economic conditions (Prime Minister’s Office (UK), “Speech by Prime Minister Keir Starmer on National Security and Defence,”
February 15, 2025).

On June 5, 2025, NATO Defence Ministers agreed on a new set of capability targets forming the basis of an anticipated defence investment plan, which calls for Allied nations to invest 5% of GDP in defence, including 3.5% on core defence spending and 1.5% on broader defence and security-related investment such as infrastructure and resilience (NATO, “ NATO Defence Ministers agree new capability targets to strengthen the Alliance,” June 5, 2025).

This widespread
increase in military budgets is expected to bolster demand for tungsten in advanced defense systems (Merchant). Tungsten alloys are essential
in hypersonic missile casings, kinetic penetrators, tank armor, aircraft counterweights, and radiation shielding in submarines and armored
vehicles. As defense investment becomes a strategic priority, ensuring access to secure and reliable tungsten supply chains has emerged
as a shared objective among Western governments. NATO’s December 2024 Defence-Critical Supply Chain Security Roadmap formally designated
tungsten as one of 12 defense-critical raw materials, further affirming its importance in national and collective security planning (North
Atlantic Treaty Organization, “Defence-Critical Supply Chain Security Roadmap”, July 2024).

Tungsten Market
Dynamics

Since the tungsten
market is characterized by its critical importance to various high-tech and industrial applications, it is deemed a critical material
by the European Union, the United States, Australia, Canada, and South Korea due to its supply risks and economic value. According to
the United States Geological Survey, global primary tungsten production was expected to be approximately