China has implemented new export controls on minerals crucial to the US defense industry, notably antimony, a metal vital for manufacturing military equipment such as ammunition, missiles, and night vision devices.
These new regulations, which took effect on Sunday, include six antimony-related products, including ore, metal, and oxide, potentially driving up costs across the defense sector.
Antimony, an essential yet relatively obscure material, plays a significant role in US military applications, as well as in batteries and photovoltaic systems. The United States imported 63% of its antimony metal and oxide from China last year, making it heavily dependent on Chinese supply chains. In 2022, the US consumed approximately 22,000 tons of antimony, with China producing nearly half of the global supply.
The Chinese Ministry of Commerce justified the restrictions as necessary to safeguard national security and adhere to international obligations, including non-proliferation commitments. The US, along with other nations, has been trying to reduce its reliance on China for critical materials, especially those used in defense and energy sectors. Despite these efforts, China remains the leading supplier for 25 key minerals, including tungsten, germanium, magnesium, and most rare earth elements.
The export controls on antimony follow a series of similar moves by China in the past year, aimed at restricting access to critical materials. Previous measures include limits on gallium, germanium, and graphite, as well as bans on rare earth magnet and extraction technologies, all of which have been part of an ongoing trade conflict between China and the US, particularly around advanced technologies like semiconductor chips.
The new regulations require exporters to apply for a government license, which could take up to three months for approval, a delay that could further strain global supply chains. US officials and companies have expressed concern about the impact these restrictions could have on defense readiness. Antimony prices have already nearly doubled this year, reaching a record $22,750 per ton, and are expected to climb higher under the new restrictions.
In response, US companies, including Perpetua Resources, are exploring ways to boost domestic antimony production, though these efforts face environmental opposition and regulatory hurdles. Perpetua’s CEO, Jon Cherry, said the company is working to accelerate production to meet strategic needs, but full-scale operations are not expected until 2028.
The export controls are not limited to antimony. China has also tightened restrictions on superabrasive materials, including industrial diamonds, which are critical in various sectors, from defense to energy. Former US Commerce Department official Nazak Nikakhtar expressed alarm over the potential economic repercussions of these moves, calling them a threat to US economic stability.
FOX News, Bloomberg, and South China Morning Post contributed to this report.
