China bans export of critical minerals to US as trade tensions escalate

China accounted last year for 48% of globally mined antimony, which is used in ammunition, infrared missiles, nuclear weapons and night-vision goggles, as well as in batteries and photovoltaic equipment.

This year, China has accounted for 59.2% of refined germanium output and 98.8% of refined gallium production, according to consultancy Project Blue.

“The move is a considerable escalation of tensions in supply chains where access to raw material units is already tight in the West,” said Project Blue co-founder Jack Bedder.

Prices of antimony trioxide in Rotterdam had soared by 228% since the beginning of the year to $39,000 a metric ton on Nov. 28, data from information provider Argus showed.

“Everyone will dig in their backyard to find antimony. Many countries will try to find antimony deposits,” said a minor metals trader in Europe, declining to be named.

Perpetua Resources, which is developing an Idaho antimony mine with U.S. government financial support, said China is “weaponizing accessing” to minerals critical for the U.S. military and technology firms.

“We must get serious about American mineral sources,” said Perpetua CEO Jon Cherry. “It’s time to end our reliance on China and secure our future.”

United States Antimony, which refines antimony in Montana, said it believes China’s move will boost prices of the metal and thus increase supplies for its smelter, although the company acknowledged that it will take time for mines to be developed.

China’s announcement comes after Washington launched its third crackdown in three years on China’s semiconductor industry on Monday, curbing exports to 140 companies, including chip equipment maker Naura Technology Group.

Trump, whose first four-year White House term was marked by a bitter trade war with China, has said he will implement 10% tariffs on Chinese goods and threatened 60% tariffs on Chinese imports during his presidential campaign.

“It comes as no surprise that China has responded to the increasing restrictions by American authorities, current and imminent, with its own restrictions on the supply of these strategic minerals,” said Peter Arkell, chairman of the Global Mining Association of China.

“It’s a trade war that has no winners,” he said.

Separately, several Chinese industry groups on Tuesday called for their members to buy domestically made semiconductors, with one saying U.S. chips were no longer safe and reliable.

(Reporting by Amy Lv, Ella Cao and Ryan Woo in Beijing, Tony Munroe in Singapore, Ashitha Shivaprasad in Bengaluru, Trevor Hunnicutt in Luanda and Ernest Scheyder in London; Editing by Jan Harvey, Catherine Evans, Barbara Lewis and Jonathan Oatis)