China’s Dominance in Strategic Minerals

Context: China recently restricted the export of antimony citing ‘national security’ concerns.

Antimony Overview:

• Antimony is a semi-metal, silvery white in color, brittle, and crystalline. It is not a good conductor of heat or electricity and has a low vaporization temperature.
• Though not abundant, it is found in trace amounts in over 100 mineral species.
• China produces 88% of the global supply of antimony.

Uses of Antimony:

• Antimony is vital in electronics, particularly in semiconductor devices like infrared detectors and diodes.
• It stabilizes PVC in plastic manufacturing.
• In solar panels, antimony improves glass stability when exposed to UV radiation.
• Lead-antimony alloys are used in batteries, and other alloys find application in type metal for printing, bullets, and cable sheathing.
• Antimony compounds are also used in producing flame-retardant materials, paints, glass, pottery, and enamels.

China’s Monopoly on Strategic Minerals:

• China controls 60% of rare earth production, 60% of critical mineral output, and 80% of global processing capacity.
• It is the leading producer for 5 out of 12 critical minerals, and ranks second or third for three others, including Fluorspar, Gallium, and Scandium.
• China’s dominance spans the entire supply chain—mining, extraction, refining, and processing. This gives it significant leverage over global security and trade.

India’s Vulnerability:

• India heavily relies on China for imports of critical minerals like lithium, cobalt, nickel, and copper, with an import bill of approximately ₹34,000 crore in FY23.

Weaponization of the Mineral Supply Chain:

• China’s export controls on critical minerals are an integral part of its foreign policy. It leverages its mineral wealth for geopolitical advantage.
• Between 2009 and 2020, China implemented nine export restrictions on critical minerals.
• In 2023, it imposed curbs on gallium and germanium exports, retaliating against Dutch restrictions on semiconductor equipment.
• Further, it restricted exports of synthetic graphite, natural flake graphite, and rare earth processing technology, in response to US curbs on advanced computing and semiconductor products.

Implications of China’s Mineral Monopoly:

• Energy Transition Delays: China’s dominance in minerals essential for green technologies, such as lithium and cobalt, poses a threat to the global energy transition. Disruptions in China’s supply could slow down the production of electric vehicles and solar panels.
• Economic and Security Risks: Supply chain interruptions could severely impact the production of consumer electronics and advanced weaponry like fighter jets and satellites.
• Global Price Volatility: China’s control over these minerals allows it to influence prices, which can become volatile during geopolitical tensions or supply disruptions. For example, the pandemic caused a price spike in rare earth metals due to supply slowdowns.
• Diplomatic Consequences: China’s monopoly forces other nations to pursue resource diplomacy and establish strategic alliances to secure alternative mineral sources.

Way Forward:

• Diversification: Nations should focus on developing mining projects in other regions and adopting innovative mineral extraction technologies.
• Technological Innovation and Recycling: Recycling critical minerals and finding material substitutes could cut demand by 20%-40% and ease supply strains.
• Strategic Stockpiling: Building stockpiles of critical minerals could provide a safeguard against unexpected supply disruptions.