New export restrictions on critical minerals for US weapons production are being imposed by China.

The U.S. defense industry may face rising prices due to China's new export controls on minerals such as antimony, which are used as a flame-retardant component in machine bearings.

Antimony, a lesser-known metal, is utilized in various applications such as ammunition, infrared missiles, nuclear weapons, night vision goggles, batteries, and photovoltaic equipment. China accounted for almost half of the world's antimony production last year.

Six antimony-related products, including antimony ore, antimony metals, and antimony oxide, are subject to the limits that took effect on Sunday.

Last year, the U.S. imported 63% of its antimony metal and oxide from China, while Belgium was the next largest supplier with an 8% share, according to the USGS.

In order to protect national security and fulfill international obligations, the Chinese Ministry of Commerce stated that the material will be restricted.

Despite efforts by the U.S. and other countries to reduce their dependence on China for critical materials in defense and energy, China remains the top importer of 25 essential minerals, including tungsten, germanium, magnesium, barite, antimony, most rare earths, indium, graphite, gallium, and arsenic.

Over the past year, a series of restrictions on exports have been implemented, and the current measure is simply the most recent in this sequence.

In December, China imposed two bans on exporting technology related to rare earth magnets and critical materials extraction and separation.

In response to the U.S.'s restrictions on advanced semiconductor chip exports to China, China imposed export controls on gallium, germanium, and graphite in certain regions last year.

"Rob Greenway, a former NSC official, stated that during the first Cold War, we were aligned against the Soviet Union and did not import national security-sensitive items. However, since we have become a net importer across the board, we have significant vulnerabilities, and our regulatory structures have not kept up with the pace of change."

"Japan, South Korea, Scandinavian countries, and Central American countries are frustrated because they share the same problem and we are not making it easier for them. In some cases, we are even making it easier for China, such as by taxing Taiwan's exports, including semiconductors, more than Chinese exports."

This year, antimony prices have almost doubled to a record $22,750 per ton, and it is predicted that export restrictions will further increase their value.

Sellers must obtain a license from the Chinese government before selling dual-use civilian and military materials and technology, a process that usually takes around three months.

Rep. Rob Wittman, R-Va, stated that China's new restrictions on antimony, which is used in various applications such as night vision goggles, nuclear weapons, and tanks, will necessitate exporters to apply for specific licenses. The Chinese Communist Party has the power to delay or refuse these licenses outright, according to Wittman, who leads a working group on critical minerals policy in Congress.

"The CCP, as the largest producer and processor of antimony, is employing the same strategy it used for gallium and germanium to assert its market dominance and jeopardize Western economies. To mitigate this risk, we must diversify our critical mineral supply chains beyond China."

Perpetua Resources, a U.S.-based company, aims to produce domestic antimony with support from the Pentagon and the U.S. Export-Import Bank. However, it has faced opposition from environmental groups and its first production was scheduled for 2028, pending the acquisition of permits later this year.

Due to China's limitations, the company is seeking methods to accelerate production.

Jon Cherry, CEO of Perpetua, informed Reuters that they are focusing on actions to remove antimony from construction processes more quickly to meet certain strategic requirements.

"The Department of Defense recognizes the importance of antimony and the limited supply available. Various sources have reported the tightening market for antimony, with supply becoming increasingly scarce daily."

China is also restricting exports of superabrasive materials, including industrial diamonds with the highest hardness, and the machines that produce them. These materials are widely used in various industries in the U.S. and are critical in the defense and energy sectors.

Nazak Nikakthar, a former senior Commerce Department official, stated that it is truly terrifying as it has the ability to crater the U.S. economy.

"The superabrasives industry is not glamorous, but it is crucial for national security to inform the world about it. Building capacity in the United States to support the defense industrial base will take approximately two to three years."