Global Antimony Supply Crisis Spurs North American Mining Projects

China's recent imposition of strict export restrictions on antimony, a mineral crucial for military and high-tech applications, has triggered a global supply crisis. The decision, made in August 2024, has left Western nations scrambling to secure alternative sources of this critical resource. China's control over nearly 80% of global antimony production has highlighted the vulnerability of Western supply chains and the urgent need for diversification.

The impact of this supply crunch is particularly acute for U.S. defense contractors such as Lockheed Martin and Northrop Grumman. These companies rely heavily on antimony for hardening ammunition and enhancing flame-resistant armor. The potential disruption to their production lines raises concerns about U.S. defense readiness and underscores the strategic importance of securing reliable domestic sources of antimony.

In response to this crisis, there has been a renewed focus on North American mining projects. One notable example is Perpetua Resources' Stibnite Gold Project in Idaho, which has received government funding and expedited permits. This project represents a potential solution to reduce U.S. dependence on Chinese antimony and strengthen domestic supply chains.

The antimony supply crisis has also sparked interest in other North American and European mining ventures. Military Metals Corp., for instance, has recently acquired the historic West Gore Antimony Project in Nova Scotia, Canada. This former antimony-producing site, which was once Canada's largest antimony mine, offers promising potential for reviving domestic production. The company's CEO, Scott Eldridge, emphasized the strategic importance of this acquisition in light of the recent supply constraints and price surge in the antimony market.

Furthermore, Military Metals has expanded its reach into Europe by acquiring three properties in Slovakia, including two antimony projects and one tin project. These acquisitions align with the European Union's Critical Raw Materials Act, which aims to secure funding for regional mineral projects and reduce dependency on imports from politically sensitive regions.

The global antimony supply crisis has significant implications for various industries beyond defense. Antimony is a key component in advanced battery technologies, renewable energy solutions, and other high-tech applications. Its designation as a critical mineral by the U.S., Canada, the European Union, and other Western economies underscores its importance to modern industry and national security.

The current situation has led to a dramatic increase in antimony prices, rising from $11,000 per tonne to over $34,000. This price surge reflects the urgent demand for new sources of antimony outside of China, Russia, and Tajikistan, which collectively control over 90% of the world's antimony reserves.

As Western nations grapple with this supply chain vulnerability, the development of domestic antimony resources has become a priority. The success of projects like those undertaken by Perpetua Resources and Military Metals could play a crucial role in reshaping global supply chains and reducing Western dependence on Chinese imports.

The antimony crisis serves as a stark reminder of the geopolitical risks associated with critical mineral supply chains. It highlights the need for diversification and the development of domestic resources to ensure economic and national security. As these North American and European projects progress, they may significantly alter the landscape of global antimony production and trade, potentially leading to more stable and secure supply chains for Western nations.