Bota Posted on 2025-04-21 11:36:00

China restricts mineral exports - Critical metal controls "hit" international supply

From Kristi Ceta

China restricts mineral exports - Critical metal controls "hit"

China's export controls on three metals crucial to the defense and chip sectors are keeping shipments at historically low levels despite high prices worldwide, a move that Beijing says is aimed at exerting its control over the minerals supply chain.

China is the world's largest producer of antimony, germanium and gallium, which have unique but vital roles in clean energy, chip manufacturing and defense. Since 2023, Beijing has been gradually adding the metals to its export control list. In December, the country banned exports to the United States.

For each item on the control list, exporters must apply for licenses, a process that allows China to exercise the dominance it has built up over years over the mining and processing of important minerals.

The new customs data reinforced a pattern that has been building since the controls were imposed: exports have fallen and some buyers, particularly in Europe, have been excluded from the supply chain.

Exports of antimony and germanium products in the first quarter fell by 57% and 39%, respectively, compared to a year earlier. Gallium exports in March reached their lowest level since October 2023. Quarterly shipments increased compared to a year ago, but the current trend is still well below 2022, the last full year before the restrictions.

The minerals being exported, in the case of antimony, are going to a smaller group of countries. After a five-month hiatus, small shipments of antimony were sent to Belgium and Germany in March, but exports were well below historic levels and former major buyers like the Netherlands have not received shipments since September.

The three-metal pattern raises concerns about China's approval of export licenses for the seven rare earth elements it added to its control list this month. Exporters say it could take months to get them, and even longer if it comes to the United States.

Antimony exports to the US have been absent since September last year and since 2023 for germanium and gallium.

Low exports from Beijing have added to the difficulties for foreign consumers. This has pushed up prices on the international market, keeping them high in China as well.

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