Input Stories

China’s recently announced critical mineral export restrictions to the U.S. are hitting Western businesses already (Reuters, subscription). 
 
What’s going on: Chemicals and consumer goods firm Henkel told customers “it had declared force majeure and suspended deliveries of four types of adhesives and lubricants widely used by automakers, according to a Nov. 8 letter to clients reviewed by Reuters.”  

• America’s only antimony processor, United States Antimony Corporation, has “made plans to lift output at its Montana smelter, which was running at 50% of capacity after China announced curbs on antimony exports in August.” USAC is now in sourcing discussions with other countries and one domestic supplier.
• Another mining firm is developing an antimony mine in Idaho with funding from the federal government.  

Why it’s important: China has been tightening its grip on exports of critical minerals since last year, ramping up restrictions in recent months. 

• Last week, it announced a total ban on exports to the U.S. of antimony, germanium and gallium, materials vital to numerous technological, medical and national security applications. 
• The country produces 48% of the world’s supply of antimony and refines and produces 59.2% and 98.8%, respectively, of global germanium and gallium. 

The impact: Orders at one Canadian producer of natural flake graphite have risen 50% since October 2023, when China announced its initial graphite restrictions. 

• A U.S. rare earths refining firm “has this week fielded at least 10 calls from U.S. miners offering zinc ore, which can be a source of germanium during processing.” The shipments had gone to China previously. 
• Another Canadian company, which makes germanium as a byproduct at its zinc mine in Alaska, “told Reuters it was studying whether to boost output of the critical material there now that China has blocked exports to the United States.” 

Our view: “China’s increasingly stringent export controls of critical minerals hammer home the need for domestic permitting reforms to fuel U.S. energy dominance,” NAM Vice President of Domestic Policy Chris Phalen said. “These actions also make clear how important it is for the U.S. to also build and maintain robust supply chains with friendly nations.”