Western companies are feeling the pinch of China’s trade restrictions on strategic minerals, prompting urgent efforts to diversify supply chains. German chemical giant Henkel recently declared force majeure and halted deliveries of key adhesives and lubricants used by automakers due to delays in antimony imports following Beijing’s export curbs.
Henkel’s adhesive division, which generated €10.79 billion ($11.4 billion) in revenue last year, relies on antimony for products like Bonderite and Teroson. The price of antimony has surged 230% this year to $39,000 per metric ton. China, the world’s largest antimony producer, has also restricted exports of gallium, germanium, and graphite, materials vital for semiconductors, solar panels, and EV batteries.
As Beijing tightens controls, including a recent ban on exports to the U.S., Western companies are scrambling to secure alternative supplies to mitigate disruptions and maintain production stability.
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