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China’s Export Ban to Push Antimony Prices to Record Highs

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China’s recent export ban on critical minerals, including antimony, has caused significant price increases and is expected to push antimony prices to new all-time highs. The ban, which also includes gallium and germanium, is part of China’s strategy to restrict the flow of these crucial materials, especially to the United States, amid growing trade tensions between the two nations.

Antimony, widely used in semiconductors and military applications, has seen its price surge by about 250% in 2024. As of December 31, prices were already trading between $39,500 and $40,000 per metric ton in Rotterdam, and traders expect the price to exceed $40,000 per ton following the export restrictions. These prices are significantly higher than in previous years, with some traders already selling small quantities at the $40,000 mark. Non-Chinese suppliers are also expected to raise their prices to capitalize on the growing demand.

China is the world’s dominant producer of antimony, contributing nearly 50% of global supplies, which were estimated at 83,000 tons in 2024, according to the U.S. Geological Survey. As a result, the country’s export ban has prompted concerns over a global supply shortage. While the U.S. has made efforts to diversify its supply chains away from China by sourcing more materials from Southeast Asia, the immediate gap left by the ban remains a challenge.

China’s ban is part of a broader trend where it has restricted exports of several critical minerals, signaling a shift toward internal consolidation of mineral production. The U.S. has already adjusted its sourcing strategies for minerals like gallium and germanium, but these curbs have minimal impact since the U.S. has reduced its reliance on Chinese supplies of these materials. However, the market’s response to these bans has been to drive up prices, with traders exploiting the situation to push prices higher.

Experts have raised concerns about China’s growing influence over global mineral markets, prompting speculation that other metals, such as bismuth and manganese, could be targeted for future export restrictions. As the U.S. and other nations seek to reduce their dependence on China for critical minerals, self-sufficiency has become a priority for governments.

 

China Proposes Further Export Curbs on Battery and Critical Minerals Technology

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China’s Ministry of Commerce has proposed new export restrictions targeting technology used in processing critical minerals such as lithium and gallium, as well as in producing battery components, according to a document released on Thursday.

If implemented, the restrictions would follow a series of measures by Beijing to tighten control over critical minerals and related technologies, reinforcing its dominance in these sectors. These announcements come ahead of U.S. President Donald Trump’s second-term inauguration, during which he is expected to escalate trade restrictions on China.

Maintaining Lithium Dominance

China currently holds a 70% share of the global lithium processing market, critical for manufacturing electric vehicle (EV) batteries. Adam Webb, head of battery raw materials at Benchmark Mineral Intelligence, noted that the proposed measures would solidify China’s control over lithium chemical production for its domestic battery supply chain.

“These measures aim to sustain China’s high market share and ensure secure production for local supply chains,” Webb said. “However, they could create significant hurdles for Western lithium producers seeking access to Chinese technology for processing lithium chemicals.”

Impact on Global Battery and Mineral Industries

The proposed restrictions could disrupt the overseas ambitions of major Chinese battery manufacturers, including CATL, Gotion, and EVE Energy, by limiting their ability to export advanced technologies. Additionally, technologies related to gallium extraction could face similar constraints.

Gallium and lithium are crucial in the production of semiconductors, EV batteries, and renewable energy technologies. Restricting exports of processing technologies would not only bolster China’s domestic capabilities but could also amplify challenges for international competitors reliant on Chinese expertise and resources.

Next Steps

The public has until February 1 to provide feedback on the proposed changes. However, the document does not specify when these measures might take effect.

Analysts warn that if the restrictions are implemented, they could escalate existing tensions in global trade and technology markets, particularly as Western nations seek to reduce reliance on Chinese supply chains for critical minerals.

 

China Bans Export of Key Minerals to U.S., Escalating Trade Tensions

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China’s Ministry of Commerce has imposed a ban on exporting critical minerals—gallium, germanium, and antimony—to the United States, citing national security concerns. The move, effective immediately, targets materials with dual-use applications in military and civilian sectors, further intensifying trade frictions between the world’s two largest economies.

Key Details of the Export Ban

  1. Minerals Impacted
    • Gallium and germanium are essential for semiconductors, infrared technology, fiber optics, and solar cells.
    • Antimony has applications in ammunition, infrared-guided missiles, nuclear weapons, batteries, and night vision technology.
  2. Stricter Reviews on Graphite
    Exports of graphite items to the U.S. will now undergo enhanced scrutiny to ensure compliance with end-use restrictions.
  3. Production and Market Implications
    • China dominates global production, contributing 98.8% of refined gallium, 59.2% of refined germanium, and 48% of globally mined antimony in 2023.
    • The announcement has already caused a significant spike in antimony trioxide prices, surging by 228% this year to $39,000 per metric ton.

Strategic Context

  • U.S. Semiconductor Restrictions
    The ban follows Washington’s recent curbs on exports to China’s semiconductor industry, targeting 140 companies, including chip equipment maker Naura Technology Group.
  • National Security Framing
    Both nations frame their actions as necessary for national security. China’s export restrictions align with prior measures to limit critical mineral access, a vital component of advanced technology and defense.
  • Economic Impacts
    Supply chains in the West, already under strain, face further disruption. “This is a considerable escalation of tensions in supply chains where access to raw materials is tight,” said Jack Bedder, co-founder of consultancy Project Blue.

Broader Trade Tensions

China’s move occurs amid increasing tensions as the U.S. enacts policies to limit China’s access to advanced technologies. The export ban coincides with President-elect Donald Trump’s plans for aggressive tariffs on Chinese goods, potentially signaling another round of trade wars akin to his previous administration.

Global Reaction and Outlook

  • Market Adjustments
    Western countries may intensify efforts to discover alternative sources for these minerals, with exploratory projects expected to increase globally.
  • Strategic Risks
    The restriction underscores growing economic decoupling, with potential ramifications for global industries reliant on these materials.
  • Future Negotiations
    Both nations are expected to leverage these policies as bargaining tools in upcoming trade negotiations.