China’s Export Ban on Critical Minerals and American Responses

In December, China restricted exports of several crucial minerals to the United States. However, American buyers have found ways to circumvent these limitations by sourcing materials through intermediary countries like Thailand and Mexico. Some Chinese companies are reportedly willing to assist in navigating around the ban.

China prohibited the export of antimony, gallium, germanium, and other materials as a countermeasure to US restrictions on advanced computer chip sales to the country. It has effectively demonstrated control over key supply chains in 2023 by limiting the exports of these minerals. Antimony is essential for batteries, solar panels, and flame-retardant materials, while gallium and germanium are critical in semiconductor production. China remains the primary global supplier of all three, boasting numerous mining and processing facilities.

According to reports, two executives from US companies and industry experts mentioned that American buyers have adeptly rerouted shipments through other nations without significant disruption, which is evident when examining export data. For example, US customs data reveals that between December and April, 3,834 tonnes of antimony oxide were imported from Thailand and Mexico. This marks a significant increase over the past few years.

Interestingly, Thailand and Mexico have emerged as significant players in Chinese antimony exports this year, a surprising shift given they were not among the top markets prior to China’s restrictions. Experts note that there is only one antimony smelter each in Thailand and Mexico, with the latter having just resumed operations in April. Still, neither country has produced any significant quantities of the metal.

US battery manufacturers expressed concerns in June about dwindling antimony supplies, which has been labeled a “national emergency.” Sadly, the flow of antimony from third-party countries is insufficient to meet the increasing demand. The abrupt nature of China’s December ban left American battery companies without time to build up emergency reserves.

Since the ban, much of the transportation has relied on “Grey Market” suppliers, who charge significantly higher prices. Despite the challenges, China continues to maintain its dominant position by sourcing antimony from other nations to support its substantial solar panel production.

The Trump administration had started prioritizing the development of domestic antimony supplies and enhancing refining capabilities, including plans for reviving large antimony mines in Idaho. Long-term, there could be exploration initiatives in states like Alaska, Montana, Nevada, and Idaho, yet existing mining sources in the US remain limited.