BASF: Flame Retardants as a Bottleneck in Chemical Production
The German chemical company BASF operates an integrated business model that leverages synergies and manufactures complex precursors for the automotive and aerospace industries. Within the industrial supply chain, the company is heavily reliant on antimony trioxide (ATO), an indispensable synergist in flame retardants for plastics. These plastics are used in electrical connectors, cable insulation, and highly sensitive aerospace components. The global supply shortage of ATO is already leading to delivery delays, price surges, and production interruptions for numerous plastics processors. Despite high energy costs, BASF generated revenue of EUR 59.70 billion and a net profit of EUR 1.62 billion in fiscal year 2025, with a market capitalization of just under EUR 40 billion. To maintain high earnings, management is proceeding with the sale of non-core businesses, such as the coatings division.
Lynas Rare Earths: The Western Model for Rare Earths
As the world’s largest producer of rare earths outside of China, the Australian mining company Lynas Rare Earths demonstrates how to break free from Asian monopolies. The company mines high-grade ore at the Mt. Weld deposit in Western Australia, which, with an average grade of 4.1% TREO, ranks among the richest carbonatite deposits worldwide. In fiscal year 2025, the group generated a net profit of AUD 7.99 million on revenue of AUD 556.51 million. The company’s financial stability is secured by a long-term off-take agreement with the Japanese company JARE, which guarantees annual deliveries of up to 5,000 t of NdPr through 2038 at a fixed minimum price of USD 110/kg. In June 2026, the company will also undergo a planned leadership transition, with experienced separation chemist Pol Le Roux taking over operational management as interim CEO. This can also be seen as a signal—value creation lies in the further processing of rare earth elements.
Antimony Resources: High-Grade Drilling Results in North America
In a market environment marked by geopolitical risks, the Canadian junior exploration company Antimony Resources is focusing on developing the Bald Hill deposit in New Brunswick. A NI 43-101 report defines an exploration target for the project of 2.7 million tons of mineralization with an antimony grade of 3.0% to 4.0% Sb. The latest definition drilling from this spring supports these assumptions, with the key drill hole BH-25-34 returning an outstanding grade of 4.38% antimony over 7.05 m, which even includes a zone of 9.76% antimony over 3.15 m. Trench samples in the newly discovered “South Zone” also yielded hand samples with record-breaking antimony grades of up to 44.2% Sb over a strike length of more than 200 m. The company is not yet generating operating revenue at this stage of development, so the focus is entirely on the future. Since promising deposits in secure jurisdictions are rare, Antimony Resources is well-positioned.
Antimony Resources Has More to Offer: Dobie Lake Project
In addition to the Bald Hill project, the junior’s North American project pipeline includes the Dobie Lake copper property in Ontario, which serves as a strategic side project to further broaden the portfolio. However, the primary goal of the management team led by James Atkinson remains the rapid transition of Bald Hill to production using a conventional open-pit mining method. To secure regulatory approval, the company has already commissioned the environmental consulting firm GEMTEC to prepare the formal environmental impact assessment.
Conclusion: Enormous Resource Potential Meets Scarcity
The drastic supply shortage outside Asia is already driving prices on the European spot market in Rotterdam up to USD 40,000 per ton of antimony metal, while extreme premiums are sometimes paid for immediately available goods from China. The defence alliance between the US Department of Defence and MP Materials regarding rare earths could serve as a blueprint for future consolidation in the antimony sector. As Antimony Resources’ stock consolidates following a strong spring, the current market capitalization of approximately CAD 60 million could be a promising starting point. Antimony will require additional capital to reach production, but the outlook remains promising given the key figures outlined.
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