Access to critical minerals has become a pressing issue as geopolitical tensions rise. China’s export ban on critical minerals, including antimony, gallium and germanium, effective December 3, 2024, is disrupting global supply chains and driving price surges. Additionally, effective March 12, 2025, the current administration reinstated 25% tariffs on global steel imports and increased tariffs on global aluminum imports to 25%. These measures significantly affect the battery manufacturing industry, as the scarcity of antimony and the increasing costs of steel directly impact production costs.
Antimony Scarcity
Antimony is used primarily in batteries, electronics and ammunition due to its flame-retardant and metal-strengthening properties. Its scarcity is a major concern for industries reliant on fireproofing materials and semiconductor production. China controls about 48% of the global antimony supply, making it the largest producer of this critical mineral. Even though other countries like Bolivia, Kyrgyzstan and Australia have global reserves for mining antimony, most of their exports are sent to China. As supplies for antimony tighten and prices rise, there may be no large alternative source of antimony to turn to in the near future. Since the U.S. depends on China for 63% of its antimony imports, the U.S. will need to diversify its antimony sourcing from smaller, alternative producers to meet demand.
Antimony is critical for batteries used in both motive power and transportation applications. The main advantage of antimony in batteries is that they can handle deep discharges, resist corrosion and have minimal issues after being deeply discharged. Most car batteries today have a small amount of antimony, about 0.5% to 3% by weight. However, forklift batteries need more antimony, over 3.6%, to work well with deep discharges in the 20% to 80% range. Although antimony is not the most prominent element that makes up a battery, China’s critical minerals ban is driving a significant cost increase in battery manufacturing.
Geopolitical uncertainties and international trade dynamics, including tariffs, have been a concern for several months. China’s ban on critical minerals began in September 2024, which led to significant price increases. The current ban has underscored the impact of these geopolitical factors on mineral markets. The price of antimony hit an all-time high, trading around $40,000 per metric ton as of December 31, 2023. In 2024, prices have surged by an astonishing 250% and are expected to remain above $40,000.
Rising Cost of Lead Antimony in the U.S.
Steel Tariffs
Steel is an important component in motive power batteries, specifically for the trays that house the battery cells. Made from carbon steel, these trays provide structural integrity and protection, ensuring they remain secure and functional throughout a battery’s lifespan. Steel’s strength and durability make it an ideal material for battery trays, as it can withstand significant stress and impact, which is essential for maintaining the safety and reliability of the batteries.
The recent 25% tariff on imported steel has significant implications for battery manufacturing costs. The tariff has led to increased prices in anticipation of increased domestic demand and constrained supply. The cost of steel has risen from around 35 cents per pound prior to February 2025 to approximately 50 cents per pound, a 43% increase. The steel trays, being one of the most expensive components of the battery, could see a cost increase of about 30%, directly affecting overall production costs and potentially leading to higher battery prices, impacting both the manufacturers’ and customers’ bottom line.
Battery manufacturers and their customers will have to navigate these new market conditions as access to critical minerals becomes more challenging and the cost of other battery components rise.
Jeremy Furr
Senior Vice President, Strategic Sourcing
