Which critical mineral will China ban next?

Recall China's export restrictions for gallium and germanium back in July.

The event went largely unnoticed by global markets. 

But it was a clear warning... 

China’s authorities are far from finished in weaponising their dominance of critical metal supplies. 

Its why I wrote this piece for Livewire...

 Key Question… Which Critical Mineral Will China Ban Next?

In the article I flagged rare earths and graphite as the most likely contenders to meet export bans.

That’s because China dominates the supply of these two critical minerals.

As it turns out, this was a timely piece.

Just ten days after the article was published on Livewire, China shocked markets by announcing trade restrictions for refined graphite material used in the EV battery anode market.

The rush was on.

Companies like Syrah Resources (ASX: SYR) and Renascor Resources (ASX: RNU) climbed more than 50% just days after China’s announcement.

Short sellers jumped ship and long buyers poured in.

Graphite’s lacklustre year made a dramatic pivot to the upside.

Importantly though, last week’s development offered a timely reminder of the enormous opportunities available in the critical metal sector.

Despite heavy selling in 2023, junior mining stocks sit primed for recovery.

Declining output at established mines, nationalisation risks, broken supply chains, geopolitical tensions, and severe underinvestment in exploration and mine development are on a collision course with a once-in-a-century energy transition that happens to be extremely metal-intensive.

It's why investors need to remain cognizant of the underlying forces still at play in this market and open to the tremendous value on offer.

In terms of China, there’s still plenty of firepower left in its critical metal arsenal.

We’ve now seen restrictions for gallium, germanium and graphite…

There’s no reason to believe pressure will ease.

That’s why the key question remains… which commodity will be next?

To find the answer to that, I suggest revisiting the piece from earlier this month. 

You can access that here.

James Cooper is a geologist and mining analyst who runs the publication Diggers and Drillers. You can also follow James on Twitter @JCooperGeo