Extract from a recent Canary Capital Report on REE considerations
China has recently announced export restrictions on antimony, a critical mineral essential for defence and industrial applications.
Set to take effect on September 15, 2024,these restrictions require exporters to obtain licenses from China's Commerce Ministry.
China currently dominates global antimony production, accounting for about 48% of the world's supply and 70% of U.S. imports. Antimony is crucial for various military applications, including armour-piercing ammunition, night vision goggles, and precision optics, as well as for flame retardants and lead-acid batteries in civilian use.
The U.S. has not mined antimony domestically since 2001 and relies heavily on imports, with limited stockpiles.This move by China is part of a broader trend of tightening control over critical minerals, following similar restrictions on gallium, germanium, and graphite. The new restrictions are expected to significantly impact the global antimony market, potentially driving prices up from their current already record high of $23,700 per metric ton.
To address these supply chain vulnerabilities, the U.S. is exploring partnerships with other producers like Tajikistan and Australia. However,diversifying supply chains and developing new sources will take time,highlighting the urgent need for strategic planning in critical mineral supply chains.
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