With Western companies scrambling for new metal sources, the drilling industry could take a big hit. These operations rely on tungsten-based and other high-performance materials for drill bits.

In other words, it’ll be very hard to “drill baby drill” without the proper materials to build bits.

Tungsten is one of the toughest metals out there, which is why it’s a go-to for drill bits that need to cut through hard rock and tough formations. Tungsten has become increasingly valuable. The tungsten carbide market hit $19.4 billion in value in 2022 and it's gaining speed. Projections show it could reach $27.5 billion by 2028, growing at a solid 5.9% per year.

Many drill bits used in water well drilling and mining are tungsten carbide-tipped due to their durability and resistance to wear. If tungsten becomes hard to find, prices could go up for manufacturers and drillers.

Drilling geothermal wells takes very tough materials to handle the extreme heat and pressure underground. That’s why tungsten carbide bits are a popular choice—they’re built to last in harsh conditions. A shortage could slow down the growth of geothermal energy, making expansion a real challenge.

On February 10th, American Tungsten delivered comments on China's expanded tungsten controls:

“China’s recent decision to further restrict tungsten exports marks a significant turning point for the global minerals market. This policy change not only underscores the strategic importance of tungsten, but also highlights the urgent need for a reliable, domestic source of this critical mineral. American Tungsten is planning to be fully prepared to meet this demand, ensuring that the U.S. has access to the high-quality tungsten they require for innovation and national defense," said Murray Nye, CEO of American Tungsten.

Indium is another crucial metal typically used in electronics and solar panels. However, it’s also used in specialty coatings for drill bits to boost heat and corrosion resistance. If indium exports are restricted, manufacturers that depend on high-performance coatings could feel the impact.

Overall, companies involved in water well and geothermal drilling may face higher costs. Limited tungsten supplies could drive up prices for drill bits and drilling equipment. The global drilling industry might soon be bracing for potential supply chain disruptions and increased costs.

Back in 2018, The Driller detailed how steel tariffs could affect the industry back then. Wisely said, regardless of what the effects are, manufacturers and contractors need to roll with the changes, just as they would any other business challenge.

“If you can’t produce, in the United States, one of the most basic components or raw materials that your manufacturing facility depends on for products you manufacture and sell, then you’re not starting out in a good position to begin with," Steve Warren, president and CEO of Throop Rock Bit told The Driller.

And this very much so still applies in 2025.

Another good reference point: In episode 56 of The Driller Newscast, Brock Yordy spoke with Dean Kangleas, vice president of product services of Sandvik Rock Tools Division, about making changes in the mining industry in order to offset future material limitations.