Lesser-Known Critical Metal Spikes To Decade High As Sino-US Trade Tensions Soar

Earlier this month, China imposed restrictions on the export of five critical metals essential to defense, clean technology, and other industries. The tit-for-tat move was in response to President Trump's blanket 10% tariffs on all Chinese goods. While Beijing has stopped short of an outright export ban on these meals, trade tensions have pushed these metal prices higher. 

One of the lesser-known but critical metals used in the defense industry—bismuth—has surged to a decade-high after China added it to its export control list. Beijing has also targeted four other critical metals in recent weeks, including tungsten, tellurium, molybdenum, and indium. Notably, China remains the world's largest producer of all five.

Fastmarkets data via Bloomberg shows bismuth prices have jumped 38% since export restrictions were announced on Feb. 4.  

RealClear Defense recently noted that the US lacks proper reserves, scraps, and/or substitutes to fill supply gaps caused by the Chinese export restrictions on bismuth. 

"For instance, China supplied over 60% of America's bismuth consumption from 2019 to 2022, and the United States has not produced bismuth since 1997. The US National Defense Stockpile also has no inventory of bismuth," the media outlet noted. 

Bismuth is critical because it's used in ammunition and alloys for defense...

China's global metal mining and refining dominance poses a significant national security threat to the US. For example, China is responsible for about 80% of the world's bismuth production and controls 81% of the world's tungsten production—a critical material for armor-piercing munitions, artillery shells, and other weaponry. 

"Chinese bismuth ingot exports are set to halt in the near term, given exporters need time to apply for licenses," said Chen Qiqi, an analyst at Mysteel Global, quoted by Bloomberg. 

Chen added that traders are hoarding the metal ahead of further price gains.  

Earlier this month, Lewis Black, CEO of North America's Almonty Industries, stated that his customer base is in a "state of disbelief" after Beijing's export controls on tungsten. 

"It's the warning shot, because we cannot exist without it," Black said. He noted: "Our economy, manufacturing, defense, everything, is so dependent on it. And yet, Russia, China and North Korea have about 90% of the output."

What's clear is that the Trump administration has to dramatically increase "fortifying" the nation for future mineral bans from China that could impact US defense production. This includes the rapid investment into domestic mining, processing, and recycling operations. 

The US has also shown interest in Ukraine's rare earth minerals...

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