China to Restrict Antimony Exports for National Security: New Limits Affect Key Military and Industrial Uses
China will implement new export limits on antimony and related materials starting September 15, according to the Commerce Ministry. This move is part of Beijing’s broader strategy to control critical minerals where it holds a dominant position.
Last year, China produced nearly half of the world’s antimony, a vital metal in military technology including ammunition, infrared missiles, nuclear weapons, and night vision gear, as well as in batteries and solar equipment. The ministry stated that these restrictions are aimed at protecting national security and fulfilling international obligations, such as non-proliferation.
The restrictions encompass six types of antimony-related products, including ore, metals, and oxides, and also prohibit the export of gold-antimony smelting and separation technology without prior approval.
Experts like Christopher Ecclestone from Hallgarten & Company see this move as a strategic play to prioritize domestic needs over international sales, potentially intensifying pressure on US and European militaries.
Dual-purpose
Exporters of affected products must obtain export licenses for dual-purpose items and technologies—those with both military and civilian applications—according to the new regulations.
In response, the US and other nations are accelerating efforts to reduce their dependence on China for essential materials, implementing policies and support measures to bolster their own critical minerals industries, including rare earths.
In an April research note, analysts from China Securities predicted that rising demand for arms and ammunition, driven by ongoing conflicts and geopolitical tensions, would likely lead to stricter controls and increased stockpiling of antimony ore.
Perpetua Resources, which is developing a US-based antimony and gold project with backing from the Pentagon and the US Export-Import Bank, had initially planned to start production by 2028, pending final permits. However, China’s recent actions have prompted the company to explore ways to accelerate antimony production.
Jon Cherry, CEO of Perpetua, told Reuters, “We are exploring measures to expedite antimony output during construction to address these strategic needs.” He added that the US Department of Defense is acutely aware of antimony’s critical importance and the growing supply constraints.
Perpetua’s shares surged as much as 19% on Thursday, reaching their highest level in three years.
Expanding restrictions
China’s new restrictions build on a series of measures introduced over the past year.
In December, China implemented a ban on exporting technology for producing rare earth magnets, adding to existing prohibitions on technology for extracting and separating these critical materials. Additionally, Beijing has tightened controls on graphite products and imposed new restrictions on gallium and germanium exports, which are essential for the semiconductor industry.
Antimony prices have reached record highs this year, driven by tight supply and increasing demand, particularly from the photovoltaic sector where the metal enhances solar cell performance.
This surge has significantly boosted the stock prices of Chinese producers such as Hunan Gold (002155.SZ), Tibet Huayu Mining (601020.SS), and Guangxi Huaxi Non-Ferrous (600301.SS), which have seen gains of 66% to 93% in 2024.
An antimony producer in Hunan province, speaking anonymously due to media restrictions, noted that while they are awaiting the impact of the latest restrictions, they anticipate short-term price support from a rush of stockpiling by international buyers.
Despite being the largest supplier of refined antimony, China remains a net importer of antimony concentrates, sourcing ore from countries like Thailand, Myanmar, and Russia. Customs data reveals a significant drop in imports from Russia this year.
Jack Bedder, co-founder of consultancy Project Blue, highlighted that the current antimony market is characterized by a lack of concentrate feedstock.
