Time and again, the commodity sector experiences severe shortages, which subsequently lead to sharp price increases in the commodities themselves and massive stock price increases for producers and mine developers with great regularity. Most recently, this development was observed on a large scale, first in the lithium sector and then in uranium stocks.

Currently, a new metal is pushing itself into the focus of the public and interested investors: antimony. Many people know of its existence primarily from chemistry lessons in school, when antimony had to be mentioned at least once during the treatment of the periodic table of elements.

What many don’t know is the high importance of antimony in the chemical industry and the defense sector. Here, the metal not only finds numerous applications but is also one of those raw materials that cannot be replaced by other metals or alloys.

A Unique Opportunity Arises from the Multitude of Applications

The irreplaceability in combination with the high number of different applications alone provides a good basis for an interesting and lucrative investment opportunity, while at the same time being suitable for causing concerns for purchasers in the industry, as they must ensure that their companies’ needs are met in any case – if necessary, at any price.

What represents a significant problem for purchasers is an attractive opportunity for investors, as for five years, the industry has been demanding more antimony than is simultaneously being mined by mining companies. Within the industry, an increase in the annual deficit to 36,000 tons is expected by 2030.

That’s not all: The bulk of available antimony also comes from the “wrong” countries. A proud 60% of the global supply comes from China, Russia, and Kazakhstan. Considering that manufacturers of weapons and ammunition are among the major demanders of antimony, it quickly becomes clear why the prospects for purchasers from Rheinmetall and Co. are currently anything but rosy.

Chinese Export Restrictions on Antimony Drive the USA into a Corner

Antimony is an indispensable key raw material, especially for arms production. Russia is at war and China is massively arming itself. Accordingly, the willingness to give away the antimony needed for themselves to other countries is low in both countries. So far, so bad. But that’s not all, China even went a step further last year.

The Middle Kingdom had recognized that it could use the Western weakness in the production and processing of antimony as an advantage in negotiations with the West. Here, they had and have a lever against the West in hand that can be used very easily and very effectively as a means of pressure.

The price development of antimony in September 2024 made clear how strong the Chinese position is. Since Chinese companies have to apply for an export permit for antimony and technology needed for the production and refining of antimony, the government in Beijing effectively has the power to determine how much antimony is delivered to which countries.

The fact that the USA was effectively cut off from the supply of antimony by these new regulations in September last year has not only caused the price of antimony to rise massively. Subsequently, a veritable panic has also arisen in the USA – which is quite understandable. After all, what is the status of the world’s largest military power still worth if it can no longer produce ammunition for shooting or new weapons to replace older models due to a lack of antimony?

The USA is Now Trying to Make up for the Shortcomings of the Last Two Decades with High Pressure

For Western countries in general and the USA in particular, the coming years for antimony could become what one might call a nightmare come true. For while global demand for antimony is expected to increase by another 30% by 2030, the USA is effectively cut off from 60% of the world’s available antimony sources and itself has only one mine whose antimony content is so low that it cannot even come close to meeting the country’s needs.

The operational hustle and bustle currently felt in Europe, the United States, Canada, and Japan regarding antimony is correspondingly large. Among all minerals and metals classified as critical, antimony is considered by far the most critical. Western governments are therefore making great efforts to develop and bring new antimony properties into production as quickly as possible.

At this point, not only is a lot of money being invested. Governments are also aware of what many investors have not yet on their radar: time is pressing, and the West can no longer afford further delays. Therefore, the antimony sector currently offers great opportunities for investors.

Despite recent price increases in antimony, many projects and companies are still undervalued. They now need to be developed quickly and brought into production regardless of the associated costs. If this does not happen, a military dominance by Russia and China, which nobody in the West can want, threatens in the foreseeable future.

Investors looking for companies with attractive antimony projects should therefore take a look at companies such as Silver47 (WKN A408EQ / TSXV AGA), Terra Balcanica (WKN A40DA5 / CSE TERA), Nova Minerals or Critical One Energy. These could become very worthwhile investments when investors who are currently undeterred in buying Rheinmetall to ever new all-time highs suddenly realize that without antimony, nothing works anymore in night vision devices, armor, and artillery ammunition.