Running out of ammunition? The key role of Antimony Resources, Rheinmetall, and Boeing

Rheinmetall pushes ahead with European ammunition production

Rheinmetall has become a key player in the rearmament of Europe. To meet the enormous demand for ammunition in current conflicts, the company is currently building 13 new plants in Europe or expanding existing facilities. One milestone is the new plant in Unterlüß, where production of 155 mm artillery shells is set to increase from 25,000 units in 2025 to 140,000 in the current year and finally to 350,000 from 2027 onwards. The financial impact of this comprehensive scaling is reflected in the operating profit of the defense business, which climbed to EUR 825 million in the first nine months of last year. With an order backlog of nearly EUR 64 billion, an almost unimaginable figure, the Group is benefiting from the expansion of the European defense architecture. However, all these capacity expansions depend on a functioning supply chain for hardening agents such as antimony. At the same time, successes are already priced into Rheinmetall shares. This is reason enough for investors to look elsewhere.

Boeing and its dependence on high-tech sensors

At US-based Boeing, too, the availability of raw materials dictates the pace. In its Defense, Space & Security segment, the company is focusing on stabilizing its production and, like Rheinmetall, has a record order backlog of USD 85 billion. Boeing is particularly dependent on unhindered access to critical raw materials in the areas of missile defense and guided missiles. The compound indium antimonide forms the technological heart of infrared sensors in seeker heads, which are used, for example, in the modern AIM-9X Sidewinder air defense system. To ensure the precision of these weapons in long-range programs such as "Golden Dome," Boeing is forced to intervene even deeper in the supply chain and protect itself against material shortages. The company faces the enormous challenge of ramping up production while the US government is simultaneously struggling with Chinese export bans on military end uses. Boeing must therefore also focus on securing its supply chain and urgently needs critical raw materials such as antimony.

Antimony Resources secures the Western raw material base

Amid these palpable supply concerns, Antimony Resources is increasingly moving into a key strategic position. The junior explorer focuses exclusively on the development of antimony deposits in North America and offers investors the opportunity to benefit from the scarcity of this sought-after element. Management's primary focus is on the Bald Hill project in the Canadian province of New Brunswick. To precisely define the system there, the company has launched an extensive 10,000 m drilling program. Initial results confirm the high geological potential of the area, including drill intercepts of 4.17% antimony over 7.40 m. With a market capitalization of approximately CAD 103 million, the company is still relatively inexpensive. Also, it operates in a politically secure and mining-friendly jurisdiction, which further underpins the value of the asset in the current geopolitical environment.

Strategic self-sufficiency will determine the future

Without a stable supply of this strategic metal, Western arsenals risk remaining structurally undersupplied, which jeopardizes defense capabilities in the current extremely volatile geopolitical situation. While industry giants such as Rheinmetall and Boeing are driving industrial scaling and represent established basic investments, Antimony Resources is what makes the production of the major arms manufacturers possible in the first place. Material that Antimony Resources could extract within the next two to three years could already be used to fulfill defense contracts awarded today by companies such as Rheinmetall or Boeing. The reason for this is the long lead times that now exist in the industry. If the market recognizes this dependence on new Western deposits such as those being developed by Antimony Resources, the Canadian company's shares are likely to become even more attractive in the future. One thing is clear: Antimony Resources has what many companies urgently need right now.