Trump was right…America has a China problem.
And it’s hitting us from all sides.
World War III feels closer than ever, the AI revolution is accelerating beyond our control, and the green energy transition is grinding to a halt.
Because China holds the keys to the dominion of critical minerals.
They’ve cornered the market, and they don’t seem to be afraid to make use of it as leverage.
Just have a look at antimony, a vital component in all the things from long-range missiles to advanced electronics. Forbes describes it as “most vital metal you’ve never heard of”, and because the war in Ukraine demonstrates, our dependence on China for this critical mineral leaves us vulnerable.
Antimony prices exploded this yr, rising well over 200% after Beijing slapped export restrictions on antimony, with the specific intention of restricting global shipments to shore up China’s own natural security. This move has sent shockwaves through the tech and defense industries. Antimony is currently trading at over $35,000 a ton.
Listed here are two firms which might be seeking to help the West escape from the stranglehold China currently has us in and ought to be in your watchlist for 2025.
Canadian junior miner Military Metals Corp. wasted no time jumping into this game with a series of major antimony acquisitions on two continents–Europe and North America.
They’re hoping to assist turn the tables on Chinese domination, and so they’re moving quickly to achieve this.
Military Metals Corp. recently announced that it has purchased one in every of Europe’s largest antimony deposits in Slovakia with a historical resource.
Considered one of the properties acquired is Trojarova. It is a Soviet-era resource with an initial discovery from the Nineteen Fifties and prior development within the ‘80s and ‘90s. It’s already seen two phases of exploration. In line with Military Metals Corp. CEO Scott Eldridge, the Slovakian government’s earlier exploration was halted before they reached the richest a part of the deposit.
Back then, the Cold War was winding down, and what would follow next was a destocking and the Strategic Arms Reduction Treaty (START) between the Soviets and america. Antimony was not critical.
That’s all modified now. The world is at war.
And Trojarova, with a historical resource of over 60,998.4 tons of antimony of in situ value value around $2 billion at today’s spot prices—could turn out to be a military kingmaker. Perpetua Resources has 90,000 tons of Antimony. These 2 firms are the most important Antimony firms in N.America.
Figure 1 Military Metals Corp. (CSE: MILI, OTCQB: MILIF):
For Slovakia, it could mean latest status as a European supplier of a key national defense critical metal at a time when Germany is for certain it’ll go to war with Russia in the following few years.
The corporate anticipates that the robust mining infrastructure in Slovakia aligns perfectly with the European Union’s Critical Raw Materials Act, opening avenues for potential EU funding because it advances these projects toward production.
In March 2024, the European Union allocated 500,000,000 euro under the Act in Support of Ammunition Production (ASAP) to spice up output capability to 2 million shells annually by the top of 2025. However the Western militaries have a significant problem.
With the European Union cornered, Military Metals Corp. moved to grab antimony resource shares in North America, too–in Canada’s Nova Scotia, where it acquired the West Gore Antimony Project–one in every of Canada’s largest antimony mines and a hero of WWI supplies.
With historical drilling results indicating over 7 meters of 10.6 gpt gold and three.4% antimony, Military Metals Corp. is planning to attain an enormous antimony victory for the house front. Only a month after securing West Gore, it moved to further consolidate the territory around it in an October 24th, 2024 LOI to accumulate more claims in a strategic flanking move.
Eldridge is expecting the availability crunch to snowball, with antimony prices already doubling this yr, and poised to maintain going into next yr. Military Metals Corp. is now strategically positioned as a number one developer of the metal that can make or break the Western world in global warfare.
#2 Perpetua Resources (NASDAQ:PPTA)
Perpetua Resources’ (NASDAQ: PPTA) flagship Stibnite Gold Project in Idaho isn’t only one in every of the most important open-pit gold mines in america–it is usually set to be the country’s only domestic source of antimony.
In line with the corporate, the mine–a key player for Allied Forces in WWII–could find yourself supplying some 35% of U.S. antimony demand in the primary six years of production.
Federal support for Stibnite has been significant, with the Department of Defense awarding Perpetua Resources as much as $34.6 million in additional funding in February of this yr under the present Technology Investment Agreement (TIA) through Title III of the Defence Production Act (DPA), then receiving a letter of interest for a $1.8 billion loan from the U.S. Export-Import Bank (EXIM) earlier this yr to assist develop the mine.
This potential financing, which offers a 15-year term at competitive rates, is a rare backing that underscores the project’s importance to national security, particularly as the usaims to cut back its reliance on Chinese mineral imports. In truth, the loan can be one in every of the most important investments ever in a mine by the U.S. government.
In an additional show of presidency support, the Pentagon has already committed nearly $60 million under the Defense Production Act to advance Stibnite’s permitting process, emphasizing the mine’s role in securing a domestic antimony supply chain. Perpetua Resources said in September this yr that it expected to be issued the ultimate permit for the mine this December.
Source: Perpetua Resources Investor Presentation, October 2024
With bipartisan support and no expected regulatory hurdles as a consequence of federal interest, Perpetua Resources presents a novel opportunity and analysts are taking note.
Only a month ago, Roth MKM increased the stock’s goal price to $15, signaling a projected 45% return as Perpetua Resources advances toward production.
High institutional interest and the project’s potential for environmental remediation and restoration of fish spawning areas reinforce Perpetua Resource’s long-term value and align the corporate with broader U.S. strategic and environmental objectives.
Bonus stocks to keep watch over:
NioCorp Developments Ltd. (NASDAQ: NB)
NioCorp Developments is concentrated on developing the Elk Creek Superalloy Materials Project in Nebraska, which is predicted to be a big source of niobium, scandium, and titanium. Niobium is a critical material utilized in the production of high-strength steel alloys, that are essential for the development of military vehicles, aircraft, and infrastructure. Scandium is utilized in advanced aluminum alloys for aerospace applications, and titanium is a vital material for aerospace and defense applications as a consequence of its strength, lightness, and corrosion resistance.
NioCorp’s Elk Creek project has the potential to determine a domestic supply of those critical minerals, reducing reliance on foreign sources and strengthening the U.S. defense industrial base. By securing access to those materials, the U.S. can make sure the production of advanced military equipment and maintain its technological edge within the defense sector.
Moreover, NioCorp’s commitment to responsible mining practices and community engagement is essential for ensuring the long-term sustainability of its operations and the responsible sourcing of critical minerals. By prioritizing environmental protection and dealing closely with local communities, NioCorp contributes to a safer and socially responsible domestic supply chain for critical minerals utilized in defense applications.
Barrick Gold Corporation (NYSE:GOLD)
While Barrick Gold Corporation is primarily known for its dominance in gold production, it is also a big player within the copper mining industry. This is a vital aspect of their operations, as copper is important for a big selection of defense applications. It’s used extensively in electrical wiring for military vehicles and equipment, within the manufacturing of ammunition, and within the production of advanced electronics for communication, guidance, and sensor systems. Copper’s high conductivity and sturdiness make it indispensable for these applications.
Barrick’s copper mining operations contribute to a diversified and reliable supply of this critical metal, which is important for maintaining the technological fringe of the US military. As a Western-based company, Barrick’s operations are subject to stricter environmental and labor regulations than those in lots of other copper-producing regions. This promotes responsible sourcing and minimizes the geopolitical risks related to counting on copper from less stable regions, where production could be disrupted by conflict, political instability, or human rights concerns.
Barrick’s commitment to sustainable mining practices further enhances its value as a supplier to the defense industry. The corporate has implemented initiatives to cut back its environmental impact, including reducing water consumption, minimizing greenhouse gas emissions, and promoting biodiversity. This give attention to sustainability aligns with the growing emphasis on environmental responsibility throughout the defense sector and ensures that Barrick’s copper is sourced ethically and with consideration for long-term environmental impacts.
Newmont Corporation (NYSE:NEM)
While widely known for its leading position in gold production, Newmont Corporation also holds a big and strategically necessary role within the copper mining sector. Copper is totally crucial for a big selection of defense applications, from the wiring that connects vital systems inside military vehicles and aircraft to the advanced electronics utilized in communication and weapons guidance systems. Copper’s high conductivity and resistance to corrosion make it indispensable for these applications.
Newmont’s copper production contributes to a stable and reliable supply of this critical metal for the US defense industry. This domestic production is especially necessary since it reduces reliance on copper sourced from potentially unstable or adversarial nations. By sourcing copper from a Western-based company like Newmont, the US can ensure a safer and ethical supply chain. Newmont adheres to high environmental and social responsibility standards, ensuring that its copper is mined and processed in a way that minimizes environmental impact and respects the rights of employees and communities. This commitment to responsible sourcing aligns with the growing emphasis on sustainability throughout the defense sector.
Newmont’s global presence and diversified operations provide a level of resilience against potential supply chain disruptions. The corporate’s mines are positioned in various regions, reducing the chance of production being significantly impacted by geopolitical instability or natural disasters in a single location. This geographical diversification strengthens the general security of the copper supply for the US defense industry. Newmont’s commitment to operational excellence and continuous improvement ensures that it may possibly consistently deliver high-quality copper to satisfy the demanding requirements of defense applications.
Arch Resources, Inc. (NYSE:ARCH)
Arch Resources is a significant producer of metallurgical coal, a vital component within the steelmaking process. While the world is transitioning towards cleaner energy sources, metallurgical coal stays an important ingredient for producing the high-quality steel needed for various defense applications. It’s utilized in the production of all the things from armored vehicles and naval vessels to critical infrastructure and the machinery used to fabricate weapons systems.
Arch Resources plays a vital role in ensuring a stable supply of metallurgical coal for the US steel industry, which in turn supports the production of critical defense equipment. The corporate operates mines in regions with access to abundant coal reserves, ensuring a reliable supply of this essential raw material. This domestic production reduces reliance on foreign coal sources and strengthens the resilience of the US steel industry, which is significant for national security.
While Arch Resources acknowledges the environmental challenges related to coal mining, the corporate is committed to responsible mining practices that minimize its impact. This includes investing in technologies to cut back emissions, reclaim mined land, and protect water resources. Arch Resources also prioritizes the security and well-being of its workforce and the communities where it operates. Because the world transitions to cleaner energy sources, Arch Resources is actively exploring opportunities to diversify its business and contribute to a more sustainable energy future.
Constellium SE (NYSE:CSTM)
Constellium SE is a worldwide leader in the event and manufacturing of advanced aluminum products. Aluminum alloys are essential for aerospace and defense applications as a consequence of their high strength-to-weight ratio, corrosion resistance, and formability. These qualities make aluminum ideal to be used in aircraft structures, missile components, and armored vehicles, where lightweighting and sturdiness are crucial. Constellium’s expertise in aluminum processing, including extrusion, rolling, and precision casting, allows them to provide high-performance aluminum products tailored to the precise needs of the defense industry. Their give attention to innovation makes them a vital supplier to Western defense contractors in search of to keep up a technological edge.
Constellium’s advanced aluminum products are utilized in the development of military aircraft, missiles, and other defense systems, contributing to the technological superiority and operational readiness of Western militaries. For instance, Constellium supplies aluminum structural components for the F-35 Joint Strike Fighter program, one of the advanced fighter jets on the earth. The corporate’s commitment to research and development ensures that it stays on the forefront of aluminum technology, providing cutting-edge materials for critical defense applications. This dedication to innovation is significant for meeting the evolving demands of the defense industry, which consistently seeks lighter, stronger, and more resilient materials to boost the performance and survivability of military equipment.
Constellium’s strategic partnerships with key players within the aerospace and defense sectors further solidify its position as an important supplier to Western militaries. By collaborating with leading aircraft manufacturers and defense contractors, Constellium ensures that its aluminum solutions are integrated effectively into critical defense platforms. This collaborative approach fosters innovation and accelerates the event of advanced aluminum technologies that meet the evolving needs of contemporary warfare. Constellium’s commitment to supporting Western defense capabilities reinforces its role as a vital partner in maintaining security and stability on a worldwide scale.
Trilogy Metals Inc. (NYSE:TMQ)
Trilogy Metals Inc. is concentrated on developing the Ambler Mining District in Alaska, a region with the potential to be a big source of copper and other critical minerals like cobalt, zinc, lead, gold, and silver. The Ambler project is especially necessary as a consequence of its location inside america.
By developing this domestic source of copper, Trilogy Metals contributes to reducing reliance on foreign suppliers and strengthening the resilience of the US defense industrial base. That is crucial for ensuring a stable and secure supply of copper for critical defense needs, especially considering the metal’s extensive use in ammunition, electrical wiring, and electronics for various military applications. Counting on domestic sources minimizes geopolitical risks related to sourcing essential materials from potentially unstable or adversarial nations.
The Ambler Mining District holds the promise of becoming a big source of other minerals critical to the US defense industry. Cobalt, for instance, is a key component in high-performance alloys utilized in jet engines and other military equipment. Zinc is significant for corrosion protection and is utilized in galvanized steel for military vehicles and infrastructure.
Securing a domestic supply of those critical minerals not only enhances national security but in addition supports the event of advanced technologies and strengthens the general competitiveness of the US defense industry. Trilogy Metals’ commitment to responsible mining practices and environmental stewardship can be crucial in ensuring the long-term viability and sustainability of the Ambler project.
Arcadium Lithium plc (NYSE:ALTM)
Arcadium Lithium plc is a newly formed lithium giant resulting from the merger of Allkem and Livent. This merger brings together two industry leaders with complementary strengths, creating an organization with a various portfolio of lithium assets and a worldwide footprint. Arcadium Lithium is poised to be a significant force within the lithium market, contributing significantly to the availability of this critical mineral for electric vehicles, renewable energy storage, and other applications.
The importance of Arcadium Lithium lies in its potential to strengthen the safety and resilience of the lithium supply chain for the Western world. By combining the resources and expertise of Allkem and Livent, Arcadium Lithium can leverage its diversified operations to mitigate geopolitical risks and ensure a more stable supply of lithium for Western industries. This is especially crucial because the demand for lithium is predicted to soar in the approaching years as a consequence of the rapid growth of the electrical vehicle market and the increasing adoption of renewable energy technologies.
Arcadium Lithium’s commitment to sustainable and responsible lithium production aligns with the growing emphasis on environmental stewardship and ethical sourcing. By prioritizing sustainable practices throughout its operations, Arcadium Lithium contributes to a more responsible and environmentally friendly lithium supply chain, which is important for the long-term viability of the electrical vehicle and renewable energy sectors.
By. Michael Kern
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Forward-Looking Statements
This publication comprises forward-looking information which is subject to a wide range of risks and uncertainties and other aspects that might cause actual events or results to differ from those projected within the forward-looking statements. The forward-looking statements on this publication are based on current expectations and assumptions about future events, geopolitical developments, trade policies, market conditions, the corporate’s strategic initiatives to deal with the critical shortage of antimony, and current expectations, estimates, and projections in regards to the industry and markets wherein the corporate operates. Aspects that might change or prevent these statements from coming to fruition include, but should not limited to, the potential impact of the upcoming U.S. elections on various industries and specific firms, changes in government policies, market conditions, regulatory developments, geopolitical events and the company’s ability to successfully acquire and develop latest antimony resources and fluctuations in antimony prices. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect latest events or circumstances, except as required by law.
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