China has announced an export ban on critical minerals, including gallium, germanium, and antimony, to the United States, amid escalating trade tensions between the two countries.
The move follows Washington’s crackdown on China’s semiconductor industry over growing concerns with national security and global supply chains.
The Chinese Ministry of Commerce on Tuesday cited the dual-use nature of these minerals, which are essential for both military and civilian technologies.
Based on Chinese laws, the measures include a ban on exporting such items to U.S. military users or for military purposes. China will also enforce stricter reviews of graphite items shipped to the States.
The term “dual-use items” refers to goods, technologies and services that can be used for both civil and military purposes.
“In principle, the export of gallium, germanium, antimony and superhard materials to the United States shall not be permitted,” the Ministry said in a statement.
Gallium and germanium are crucial for semiconductors, fiber optics, and solar cells, while antimony is used in defence equipment, such as ammunition, night-vision devices and batteries. Graphite makes up the largest component by volume in electric vehicle batteries.
China controls a dominant share of the global supply of these critical minerals, producing nearly 99% of refined gallium, 59% of refined germanium, and 48% of mined antimony.
The trade restrictions are pushing prices for critical minerals higher, with antimony prices in Europe already soaring 228% this year.
The export ban is good news for Australian listed companies operating in the critical minerals space, as the U.S. looks to diversify its supply chains to mitigate its reliance on China.
Battery Age Minerals (ASX: BM8), which is focused on the exploration of battery minerals including germanium and gallium, shares soared 35% on Wednesday and another gallium and germanium explorer, Golden Deeps (ASX: GED) shares rallied 24%.
Meanwhile, MTM Critical Metals (ASX: MTM) which announced last week it had formed a strategic partnership with Indium Corporation to recover gallium and germanium from scrap, saw its shares surge almost 30% in Wednesday trading.
Trade tensions between the two nations were already high after U.S. President-elect Donald Trump previously threatened tariffs of up to 60% on Chinese imports.
Disclaimer: This article provides general information and does not constitute financial advice. Always consult a professional advisor before making investment decisions.
