Is this trend the next big thing? Hensoldt, BASF, Antimony Resources

China dominates the antimony market – Security of supply at risk

China dominates the world thanks to its strategic raw materials policy. After rare earths and tungsten, antimony is now coming into focus. Around 78% of global antimony processing takes place in China. This creates enormous dependency risks. The US already covers over 50% of its antimony needs with imports from China. Supply bottlenecks and export restrictions in China have recently led to a shortage of supply and soaring prices. In 2024, the price of antimony temporarily tripled to over USD 38,000 per tonne and is currently approaching record levels of USD 60,000. As a result, industry and governments are desperately searching for alternative sources outside China. Approximately 26% of global production now originates from Tajikistan, with the remainder coming from Turkey and Russia. However, these raw materials are often shipped back to China for smelting. The solution could be an antimony producer with an outstanding mine that can offer long-term security of supply and also refine the material, which is in high demand for defense and electronics.

Antimony Resources: First mover with impressive drilling results

The Canadian company Antimony Resources has two projects with historic antimony deposits in the Canadian province of New Brunswick. In the spring, a drilling program initially covering 2,500 meters was launched with the aim of compiling a resource estimate by the end of the year. The grades were exceptional – among other things, Antimony Resources drilled 4.5 meters with a grade of 11.7%. Within industry, producers are often satisfied with grades between 2 and 3%. On Wednesday, the Company announced that another drill hole had returned grades of 4.17% over a distance of 7.40 meters, with individual sections grading over 20%.

According to the Company, further drilling results will follow within the coming weeks, which are expected to lead to a resource estimate before the end of this year. This standardized process should enable Antimony Resources to present its plans to further develop the properties and bring them into production in an even more credible manner to investors and potential partners. Antimony Resources is currently considered a first mover – antimony mining has not been profitable in the past. However, the price of antimony has increased significantly in recent years, and the US has identified its dependence on antimony imports from China as a risk. The location of Antimony's projects in the New Brunswick district near the US also speaks for their potential.

BASF and Hensoldt – Nothing works without antimony

It is not just in the US that antimony is in demand. German industrial companies BASF and Hensoldt are both relying on the semi-metal. BASF relies on antimony primarily in its plastics and flame retardants division. BASF uses antimony oxides as flame retardant synergists, which, together with halogenated compounds, make plastics flame-resistant. Without antimony, many high-tech materials would not meet strict fire safety regulations. BASF uses antimony-containing additives to ensure that plastics in vehicles, electronic housings, cable insulation, and building materials achieve the necessary fire resistance levels.

Even the defense contractor Hensoldt cannot do without antimony. More than 70% of Hensoldt's revenues are generated in the sensor technology segment. Products such as the TRML-4D air defense radar and modern infrared cameras are essential for military capabilities and are currently in high demand. However, high-tech sensor technology also depends on critical materials. Many Hensoldt systems use semiconductor compounds containing antimony to achieve maximum sensitivity. Raw materials analysts at Argus report that antimony-containing infrared detectors offer 10 times higher sensitivity and a 50% greater range than conventional silicon sensors.

Military demand likely to rise rapidly – Antimony Resources well positioned

The examples of Hensoldt and BASF demonstrate that antimony is in high demand in various industries. Fire protection is rightly a top priority for insulation materials, as well as for vehicle interiors. Added to this is military demand for this unique semi-metal – according to market researchers at Discovery Alert, military applications alone already account for almost one-fifth of global production. This trend is likely to continue – the many billions in defense spending have only been announced so far, but not yet spent. Young companies such as Antimony Resources have recognized this development in good time and are pushing ahead with antimony exploration in safe Canada. Although the Company is still in its early stages, it would not be the first time that processes have moved faster than expected in times of great scarcity. The resource estimate targeted for this year could open doors for Antimony Resources – the demand for antimony is apparent. The parallel to Almonty Industries is clear.