Antimony Ban Forces US to Seek Alternatives, Smuggling Rises
In December 2024, China imposed an export ban on antimony to the United States, leading to a quadrupling of prices in just a few months. This ban has forced US battery companies and military equipment manufacturers to seek alternative sources, with Thailand and Mexico becoming major recipients of Chinese antimony exports. More than 3,800 tons have been imported from these countries between late 2024 and early 2025.
Antimony is a critical material in advanced batteries, semiconductors, and military equipment, making it essential for both energy transition and national economies. China, being the largest producer of antimony, has used its advantage to put pressure on other countries, particularly the United States. Despite the ban, smuggling operations have been ongoing, with smugglers changing the labels of antimony to make it appear as another material like iron or zinc. This highlights the fragility of current supply chains and the need to produce, recycle, and find important minerals in more places. Artificial intelligence is now also playing a role in extracting wealth, potentially impacting future supply chain dynamics. China has found ways to obtain AI chips banned by the US through intermediaries in Malaysia and Singapore, demonstrating the global economy's ability to find solutions to strict bans.
The case of antimony smuggling into the US, despite export bans and customs regulations, underscores the complexities and challenges in global trade. While China uses its dominant position to exert pressure, other nations find ways to circumvent restrictions. This situation emphasizes the need for robust international cooperation and innovative solutions to ensure the stability and security of crucial supply chains.
