Despite the incoming Trump administration’s threat to impose tariffs on imports from Canada, China and the United States’ recent decoupling and export bans in critical mineral sectors have created a rare growth opportunity for Canadian producers.
Earlier this month, the Chinese government further tightened restrictions on exporting four semiconductor-related materials to the United States. Gallium, germanium, antimony, and superhard materials are effectively banned from U.S. exports, while stricter end-user and end-use reviews are being applied to graphite exports. This move follows U.S. measures enforcing new semiconductor export controls targeting China.
Gallium, germanium, and antimony are all essential materials in semiconductor manufacturing. Antimony, often referred to as the “war metal,” is also commonly used in military-related applications such as the production of explosives and bullets. Recently, graphite has gained significant attention as a critical raw material for the anodes in lithium-ion batteries used in electric vehicles (EVs), driven by the expansion of the EV industry.
However, the U.S. faces a heavy reliance on China for the supply of these critical minerals. According to data from the U.S. Geological Survey, in 2022, the U.S. imported $48 million worth of germanium and gallium combined, with one-quarter of its germanium and over half of its gallium supply sourced from China. Additionally, 42% of the U.S.’s graphite imports came from China.
To address this supply chain challenge, Canada, as a friendly neighbor to the U.S., has naturally emerged as a potential alternative supplier.
In December 2023, Michael Rowley, the President and CEO of Stillwater Critical Minerals Corp. (TSX.V: PGE, OTCQB: PGEZF), discussed the future of critical mineral supply in an interview with Metals 100. Michael also revealed that the company has received a strategic investment from Glencore, which will support the continued expansion of the Stillwater West project. This project features five Platreef-style nickel and copper sulfide deposits, containing a variety of critical minerals, including a total of 1.6 billion pounds of nickel, copper, and cobalt, as well as 3.8 million ounces of palladium, platinum, rhodium, and gold.
The Canadian companies involved in the production of these key minerals include Teck Resources（TSX: TECK.B）, Neo Performance Materials, and Northern Graphite. Other companies, such as Nouveau Monde Graphite, are also developing relevant projects and are poised to meet North American market demands in the future.
Neo Performance Materials, headquartered in Toronto, is North America’s sole producer of gallium, which it recovers through recycling. Teck Resources is one of the world’s largest germanium producers and is currently exploring options to expand its production capacity. Meanwhile, Military Metals, a Canadian antimony development company, is rapidly acquiring antimony mine assets in North America and Europe to establish a supply chain independent of China. For graphite, Canada also provides potential solutions through Northern Graphite, which operates North America’s only active graphite mine.
