Shocking report in the WSJ – China cuts off the West from antimony: Hensoldt, Covestro, and Antimony Resources

China dominates the antimony market and is now also disrupting international trade

Antimony is a rare metal that comes primarily from China, Russia, and Tajikistan. However, China is dominant: around 70% of global antimony production and around 78% of further processing is accounted for by the country, which has long been considered the US's biggest rival in the race for world power status. China imposed export restrictions on antimony back in the summer of 2024. If antimony products could be used militarily against China, the authorities are instructed to ban their export. The fact that even shipments originating from other countries are affected, as described in the Wall Street Journal article, is a new level of escalation. But why is antimony so important in the first place?

Armor, chemical industry, building materials, chips – Nothing works without antimony

Antimony is found in projectiles and metal alloys, in certain microchips and diodes, and has an important function as a flame retardant in plastics. Antimony trioxide, for example, is used in the casings of electronic devices, cable insulation, car parts, and construction plastics to meet strict fire safety standards. Without antimony, many high-performance plastics would not meet fire resistance requirements. Covestro, one of the largest manufacturers of high-quality polymer plastics, also relies on antimony to make its plastics less flammable. Covestro offers Makrolo polycarbonate plastics under its brand name, which are used in laptops, smartphones, LED lighting, electrical appliances, and plug connections. Many of these applications require strict fire safety, which antimony ensures. Other companies in the chemical industry, such as BASF, also process the substance, whose export has recently been drastically restricted by China.**

Hensoldt and Covestro in distress – When can Antimony Resources step into the breach?

How are companies such as Hensoldt and Covestro responding to the new supply risks? Observers repeatedly warn that warehousing is becoming increasingly important. However, warehouses are expensive. They also make sense in the event of delivery delays, but not in the event of delivery failures. In addition, antimony from China is already under criticism due to the still unsustainable mining and production conditions in the Middle Kingdom. The solution lies in antimony projects in the West. The Canadian company Antimony Resources has set itself the goal of becoming the leading supplier of antimony outside China. It aims to achieve this by developing two properties in the Canadian district of New Brunswick.

Antimony Resources' flagship project is "Bald Hill", where a high-grade antimony deposit is located. Historical exploration data indicate 725,000 to 1,000,000 tons of ore with approximately 4–5% stibnite content (Sb) – corresponding to roughly 30,000–50,000 tons of antimony in the ground. Previous drilling encountered high-grade zones, including 11.7% Sb over 4.5 m and 20.9% Sb over 2.3 m. A drilling campaign launched in April 2025 confirmed the potential: Visible antimony ore was found in 80% of the drill holes. At the end of last week, further drilling results followed with high grades of up to 28.76% Sb over a distance of 1.7 m.

Resource estimate expected in 2025 as a milestone – Fast track to production?

For Jim Atkinson, CEO of Antimony Resources, the initial results are cause for confidence: "*The results of these initial samples have strengthened our confidence in the validity of the drilling results to date and will help us determine the drill hole density we need for a *resource estimate." Such a resource estimate could be a crucial milestone for Antimony Resources. Resource estimates are prepared and audited in accordance with international mining standards and provide the basis for investors or cooperation partners to enter into potential business deals.** Investors usually wait until a resource estimate is available before investing in a company.

Antimony Resources is currently still in the early stages, but aims to complete its first resource estimate before the end of this year. At a time when countries such as the US and the EU are doing everything they can to become independent of raw material supplies from China and Russia, Antimony Resources' targeted approach could pay off. If political initiatives by the US and EU and pressure from industry converge on a verified resource estimate for a comprehensive antimony project in legally secure Canada, this could accelerate the process. The fact that the historic Lake George Mine is located there**, which mined antimony between 1970 and 1992, also shows that the region in New Brunswick is promising.

Penny stock with potential gains momentum

The Antimony Resources share is still a penny stock, but is increasingly being recognized by investors as a potential future beneficiary of the defense industry within the commodities sector. While Antimony Resources is not yet following in the footsteps of Almonty, the conditions are in place for it to do so in the long term. With a current valuation of less than CAD 10 million, the Company could unlock significant upside potential if its plans come to fruition.