Antimony remains scarce and in demand: EnerSys, Aurubis, Antimony Resources

EnerSys: Batteries need lead... and antimony

Battery manufacturers are most likely to be affected by China's export restrictions. The US company EnerSys is one of the leading manufacturers of industrial batteries and energy systems. These include replacement battery systems for telecommunications and data centers, as well as drive batteries for forklifts. The portfolio includes wired lead-acid batteries, which often contain antimony-alloyed plates for a longer service life, as well as modern lithium-ion batteries, charging systems, and related services. EnerSys's key customers come from the logistics, telecommunications, and industrial sectors. EnerSys's business has been robust so far, but rising prices for lead and antimony could weigh on margins. If the conveyor belts do indeed come to a standstill, companies like EnerSys could face even worse consequences.

Aurubis plans a refinery in Hamburg – Supply remains crucial

Europe's largest copper producer, Aurubis, is also dependent on antimony. Its core business consists of processing copper concentrates and scrap metal into high-purity copper, ingots, wires, and sheets, as well as recovering precious and by-product metals. Aurubis' products also include lead-antimony glaze, which is used as a flame retardant on circuit boards or in paints, fireworks, catalytic converters, and batteries. Aurubis recently announced plans to build a new precious metal refinery and recycling plant in Hamburg for around EUR 500 million, making it one of the few Western suppliers actively producing antimony products.

However, Aurubis also relies on supplies from mining companies. For a long time, the Company has relied on long-term purchase agreements and a diversified supplier portfolio. However, this diversification has become more difficult, as the world is increasingly divided into different centers of power. Western Antimony remains scarce, and this is where the Canadian company Antimony Resources aims to step in over the medium term. The young exploration company focuses exclusively on antimony, with its flagship project being Bald Hill in New Brunswick, Canada. The property is known for its very high antimony grades: previous drilling returned approximately 11.7% Sb over 4.5 m, peaking at grades of 20.9% Sb.

Antimony Resources with a promising project in Canada – Market is growing

Antimony has launched an extensive drilling campaign this year. Phase I included 16 holes totaling over 3,150 m and yielded numerous intercepts, such as 4.17% Sb over 7.4 m and 14.91% Sb over 3.0 m. Phase II recently commenced, with a further 6,000 m of drilling planned. The team discovered a second mineralization zone approximately 450 m away from the main area, raising hopes among observers for extensive deposits. From an investor's perspective, Antimony Resources represents a step toward reducing the US's dependence on antimony imports. If Bald Hill really does deliver usable quantities, it would lessen reliance on China. Comparable projects are scarce – production of this element, which is considered critical in many economies around the world and is therefore the subject of particular attention, is currently dormant in the US.

According to Fortune Business Insights, the global antimony market is growing strongly: analysts predict that the market will grow from around USD 1.08 billion in 2024 to USD 1.78 billion in 2032. This corresponds to an annual growth of 6.5%. The strongest drivers of this growth are applications in flame retardants, batteries, high-tech, and even military applications. In the wake of geopolitical tensions, the US and the EU are pushing for investment in domestic production. Cooperation with traditional mining countries is also playing an increasingly important role.

Antimony shares still inexpensive despite the increase

For companies like EnerSys and Aurubis, a stable supply of raw materials is becoming increasingly critical for the future. Emerging companies such as Antimony Resources are potential suppliers. However, Antimony is still in its early stages – while the promising drilling results to date offer significant hope, the path to production will take some time. The fact that Antimony's stock is already reacting dynamically to the ongoing raw materials dispute between China and the rest of the world is a good sign: the stock is now on the radar of many investors. Even after the dynamic rise in the share price, the market capitalization remains only EUR 17 million.