China’s decision to introduce strict export restrictions on antimony and its related products has sent shockwaves through global markets. As the leading supplier of antimony, accounting for 48% of the world’s mined output in 2023, China’s new policies are poised to significantly impact the global supply chain of this critical metal. Antimony is crucial for a range of military applications, including ammunition, infrared missiles, night vision equipment, as well as for batteries and photovoltaic technologies. The restrictions, set to take effect on September 15, have been justified by the Chinese Commerce Ministry as a move to safeguard national security.
The new regulations will encompass six categories of antimony-related products, including antimony ore, metals, and oxide. Furthermore, China has imposed a ban on exporting gold-antimony smelting and separation technology unless government approval is granted. Exporters of these products will now be required to obtain licenses, particularly for items and technologies that have both military and civilian uses.
China’s move is part of a broader effort to safeguard its national interests and meet international obligations, including those related to non-proliferation. While the restrictions are not aimed at any specific country or region, their effects will likely be felt globally, particularly in the United States and Europe, which heavily depend on Chinese supplies of critical minerals like antimony.
In response, the U.S. and other nations are intensifying efforts to decrease their reliance on China for essential materials. Initiatives to boost domestic production of critical minerals, including rare earth elements, are underway, though they face significant hurdles due to China’s entrenched position in the global supply chain.
One company feeling the impact of China’s new policy is Perpetua Resources, which is developing a U.S.-based antimony and gold project with support from the Pentagon and the U.S. Export-Import Bank. Initially planning to begin production by 2028, Perpetua is now exploring ways to speed up the project in light of the tightening global antimony supply. The U.S. Department of Defense has reportedly recognized the critical need to secure a stable antimony supply amid growing demand and decreasing availability.
China’s recent actions follow a series of similar measures introduced over the past year. In December, Beijing banned the export of technology used to produce rare earth magnets, adding to previous bans on technology exports for extracting and separating critical materials. More recently, China has imposed tighter controls on the export of certain graphite products, as well as gallium and germanium products, which are essential for the semiconductor industry.
The market has already responded to these developments, with antimony prices reaching unprecedented levels this year due to the constrained supply and increasing demand, particularly from the photovoltaic sector, where antimony is used to enhance solar cell performance. Chinese producers have benefited from these price hikes, with companies like Hunan Gold, Tibet Huayu Mining, and Guangxi Huaxi Non-Ferrous experiencing share price increases of 66% to 93% in 2024.
While China remains the largest supplier of refined antimony, it also imports antimony concentrates, primarily from countries like Thailand, Myanmar, and Russia. However, imports from Russia have significantly declined this year, further tightening the global supply. The ongoing shortage of antimony concentrate feedstock remains a critical issue for the market, highlighting the broader implications of China’s strategic export restrictions on this vital metal.
These new restrictions represent a major shift in the global supply chain of antimony and other critical minerals, with the potential for long-lasting effects on global markets, military capabilities, and technological progress.