Politics is increasingly becoming an important factor in the supply of these metals. From export restrictions to government-funded projects - the procurement situation for buyers is changing.
03.04.2025 - Geopolitical tensions continue to cause unrest in the markets for the so-called by-metals from antimony to hafnium and bismuth. The situation has developed dynamically, particularly since the Chinese export restrictions on gallium and germanium in the summer of 2023. New trade agreements and strategic measures to secure raw materials are intensifying the change. In this context, the annual industry meeting of producers, suppliers and buyers of these metals, the MMTA Conference from 7 to 9 April in Lisbon, the current challenges were certainly discussed in depth.
The state as a factor influencing supply
China continues to regulate the export of critical metals such as Gallium, germanium and antimony. For example, the People's Republic bans exports for certain applications, in some cases completely, and explicitly imposes an export ban on countries, in this case the United States. This has not only led to initial price spikes and supply bottlenecks, but has also fuelled the reciprocal spiral of trade restrictions between the two major economic powers. This has intensified since Donald Trump took office. The tariffs on goods from China, Canada and Mexico announced in February presumably prompted Beijing to impose further export restrictions - including on Indium compounds and bismuth. The result is an increasingly fragmented supply chain that is forcing companies to look for alternatives.
Commodity agreements move onto the government agenda
In order to reduce dependence on Chinese supplies, countries around the world are increasingly focussing on new partnerships. The EU, for example, has signed raw material agreements with Chile, South Africa and Kazakhstan as reported by the specialist portal Rohstoff.net. India is also endeavouring to gain broader access to certain resources and is building Partnerships with the USA and with Sri Lanka out. The country is also forging a Alliance with Saudi Arabiato develop its largely untapped mineral deposits.
Cooperation and crisis prevention along the supply chain
Measures to extract the metals are also being pushed forward domestically. More and more countries are investing directly in mining projects and the expansion of recycling capacities. One current example is the financial support provided by the French government and the Japanese raw materials authority JOGMEC for the company Caremag. The aim of the three-digit million euro investment is to build a modern Recycling and refinery plant for rare earths in France. Japan in particular hopes that the supply agreement will lead to a more diversified supply of raw materials and less dependence on existing sources of supply. In this case, Europe will benefit from the development of new capacities and expertise. Another example is Perpetua Resources, which, with the support of the US government, has concluded a Antimony mine in Idaho developed. This is intended to reduce US dependence on Chinese imports of the raw material, which is relevant for the military, among other things. As recently as 20 March, Donald Trump announced a Executive Order which aims to strengthen the domestic production of raw materials.
Countries are also building up emergency reserves in a targeted manner. Japan and South Korea have expanded their stocks, while China itself is continuing to build up its strategic reserves. According to Bloomberg, the main focus is on Cobalt, copper, nickel and lithium but also germanium. The USA is also focussing on State-supported stockpilingto secure their industry in the long term.
What buyers should keep in mind
Even if China is once again exporting critical metals such as gallium and germanium: The global markets for minor metals remain characterised by geopolitical developments. Buyers should not rely on a short-term easing of tensions, but should instead Appropriate stocking and continue to evaluate alternative sources of supply. This includes partnerships with suppliers outside China and examining recycling and substitution options.
The recent fluctuations show how sensitively the market reacts to political changes. Price spikes following the export restrictions in summer 2023 and the subsequent stabilisation underline the need to respond to the Market volatility to be prepared. New export restrictions, trade conflicts or political changes could put new pressure on supply chains at any time.
International specialist event on minor metals discusses raw material topics
The annual MMTA Minor Metals Trade Association Conference is dedicated to current developments, challenges and solutions in this market segment. Experts from industry and trade will come together at this important industry meeting in Lisbon from 7 to 9 April. As every year, TRADIUM will be attending this event to exchange ideas with partners and find out what is happening on the markets. In addition, on the second day of the conference, raw materials expert Jan Giese will be using the example of Gallium and germanium on geopolitical dynamics speak.
