The United States and Europe are working to reduce their reliance on critical materials from China, according to a report from the energy news website Oilprice.com. With the intensified competition between the United States and China for rare metals, the price of antimony (Sb) has increased by 200% this year, with publicly listed companies in this sector experiencing gains of over 800%. Analysts believe there may be even larger increases in the near future.
Antimony is widely used in semiconductors, batteries, paints, fire retardants, solar equipment, and as an alloy to enhance the strength of other metals. Its role is particularly crucial in military applications, including armor-piercing ammunition, night vision goggle targeting, explosive formulations, nuclear weapons production, infrared sensors, and a variety of military electronic equipment.
By restricting the export of such rare metals to the United States, the Chinese Communist Party has attempted to undermine the U.S. military-industrial complex, but this move may have backfired.
Beijing currently holds a dominant position in the antimony market, controlling approximately 48% of global antimony raw material supply and around 65% of refining and processing capacities. Meanwhile, over 60% of the antimony used by the United States is imported from China. While the U.S. has the capability to refine antimony domestically, it still relies on third-party raw material suppliers due to the lack of antimony mines.
Starting from September 15th, the Chinese government imposed export controls on metals such as antimony. This comes after last year’s restrictions on the export of materials such as gallium, germanium, and rare earth elements, indicating further regulation of strategic minerals by China.
Due to Western sanctions, Russia’s antimony exports have also been affected, accounting for 24% of global supply as of 2023. In light of the instability or limitations in the global supply chain, some companies are actively developing or acquiring antimony resources to mitigate the risk of the United States’ military capability depending on critical metals.
Military Metals Corp. has acquired three mineral exploration projects in Slovakia: the Trojarova antimony project, Tiennesgrund antimony project, and Medvedi tin project. The Trojarova project has historical antimony resources of 60,998 tons, currently valued at $23 million, demonstrating potential market development opportunities.
This company is a mineral exploration company based in British Columbia, Canada, primarily engaged in the acquisition, exploration, and development of mineral assets, focusing on the antimony sector.
Another company making significant progress is Perpetua Resources, which conducts mineral exploration activities in the United States and is headquartered in Idaho. The company primarily explores gold, silver, and antimony.
Currently, the company is focused on developing the Stibnite mining area in Idaho, one of the largest known antimony mines in the United States. It is finalizing a $1.86 billion government loan project to develop its strategic resources, with the participation of the U.S. Department of Defense.
Perpetua currently holds 90,000 tons of antimony resources, with an estimated valuation of approximately $700 million.
Last month, the U.S. consulting firm Exiger cited London consulting firm CRU analyst Chetan Soni, stating that given the current historically high prices of antimony, with the announcement of China’s restrictions on antimony exports, prices are likely to rise further.