Locksley Resources and the Path to U.S. Antimony Independence

The U.S. critical minerals landscape is undergoing a seismic shift, driven by geopolitical urgency and the energy transition. At the heart of this transformation is Locksley Resources (ASX:LKY, OTCQB:LKYRF), a company poised to redefine domestic antimony supply chains through a groundbreaking partnership with Rice University. Antimony—a strategic metal used in defense systems, flame-retardant materials, and next-generation batteries—is currently 100% imported into the U.S., with China controlling 85% of global processing. Locksley's dual-pronged strategy—combining cutting-edge R&D with direct access to U.S. government funding—positions it as a first-mover in a high-margin, geopolitically essential market.

The Antimony Bottleneck and Geopolitical Risk

Antimony is not just a niche industrial material; it is a linchpin for U.S. national security. Used in ammunition, armored vehicles, and semiconductor manufacturing, its absence from domestic processing capabilities creates a critical vulnerability. China's recent export ban on antimony, alongside gallium and germanium, has exposed the fragility of U.S. supply chains. This bottleneck is compounded by the fact that the U.S. has no active antimony processing facilities, despite hosting high-grade deposits like those at Locksley's Mojave Project in California.

Locksley's Mojave Project, located near MP Materials' Mountain Pass rare earths mine, is one of the highest-grade antimony occurrences in the U.S. The project's historical Desert Antimony Mine has yielded surface samples grading up to 46% antimony and 1,022 g/t silver, rivaling the richest deposits globally. Yet, without domestic processing, these resources remain stranded. This is where Locksley's partnership with Rice University becomes transformative.

Rice University: A Catalyst for Antimony Innovation

In August 2025, Locksley announced a strategic R&D agreement with Rice University, led by materials science luminary Professor Pulickel M. Ajayan. The collaboration is structured around two “Thrusts” to address the full antimony supply chain:

1. Thrust 1: Green Hydrometallurgy
   This initiative focuses on developing a low-energy, solvent-based extraction process for antimony from Locksley's Mojave ores. Traditional pyrometallurgical methods are energy-intensive and environmentally harmful, but Rice's expertise in nanotechnology and sustainable materials science could yield a cleaner, scalable alternative. By using antimony-rich feedstocks from the Mojave Project, Locksley aims to re-establish U.S. processing capacity, bypassing reliance on Chinese smelters.

2. Thrust 2: Energy Storage Applications
   Rice University is also exploring antimony-based materials for lithium-ion and sodium-ion batteries, supercapacitors, and hybrid power modules. Antimony's high theoretical capacity for energy storage makes it a promising candidate for next-gen battery technologies, aligning with the Biden and Trump administrations' push for domestic EV and grid storage solutions. This downstream innovation could unlock new revenue streams for Locksley, transforming it from a raw material supplier to a materials technology leader.

Federal Funding: A $1 Billion Tailwind

The U.S. government has recognized antimony's strategic importance and is pouring $1 billion into critical minerals initiatives in 2025. Locksley's partnership with Rice University directly aligns with these programs:

• DOE's Critical Minerals and Materials (CMM) Accelerator: A $50M program to de-risk and commercialize technologies for rare-earth and antimony processing.
• MESC's $500M Battery Materials Processing Grant: Supports projects that avoid sourcing from “foreign entities of concern” (FEOCs) and prioritize domestic processing.
• FECM's $250M Byproduct Recovery Initiative: Aims to extract antimony from industrial waste streams, including coal byproducts and mine tailings.

Locksley's Mojave Project is already in discussions with the U.S. Critical Materials Institute (CMI) and the Export-Import Bank, positioning it to access non-dilutive capital. The company's proximity to MP Materials and its alignment with the Defense Production Act (DPA) Title III further enhance its eligibility for federal incentives, including tax credits and equity participation in downstream projects.

Strategic Positioning and Long-Term Tailwinds

Locksley's value proposition is underpinned by three key advantages:

1. First-Mover Advantage: With no active U.S. antimony processing facilities, Locksley's Rice University collaboration could establish the first domestic plant, capturing a monopoly-like position in a market with limited substitutes.
2. Geopolitical Tailwinds: The U.S. is prioritizing antimony for defense applications, with the DoD seeking to secure 100% domestic supply by 2030. Locksley's Mojave Project is a prime candidate for DPA-backed funding.
3. Energy Transition Synergy: Antimony's role in battery technologies and flame-retardant materials positions Locksley to benefit from the $1.2 trillion U.S. clean energy investment pipeline.

Investment Thesis: A High-Conviction Play

Locksley Resources is not just a junior miner—it is a strategic enabler of U.S. energy and defense resilience. The company's Q3 2025 drilling program, supported by federal funding, could validate its resource base and unlock further capital. With a market cap of ~$150M (as of August 2025), Locksley offers a compelling risk-reward profile for investors seeking exposure to the critical minerals boom.

Key Risks:
- Regulatory delays in permitting, though mitigated by the Trump administration's accelerated “Unleashing American Energy” executive order.
- Technical challenges in scaling Rice University's hydrometallurgical process.

Upside Drivers:
- Federal funding access and DPA incentives.
- Antimony price appreciation as demand outstrips supply.
- Synergies with MP Materials and the broader Mountain Pass ecosystem.

Conclusion: A Strategic Imperative

Locksley Resources is at the intersection of energy transition, national defense, and critical mineral scarcity. Its partnership with Rice University and alignment with U.S. government priorities create a unique opportunity to build a vertically integrated antimony supply chain. For investors, this is more than a commodity play—it's a bet on the future of U.S. industrial independence. As the Biden and Trump administrations race to secure supply chains, Locksley's Mojave Project and Rice-led innovation could become the cornerstone of a new era in critical mineral security.

Investment Recommendation: Buy with a 12-month target of $0.50/share (ASX:LKY) or $0.35/share (OTCQB:LKYRF), with a long-term horizon of 3–5 years. Positioning in Locksley offers exposure to a high-margin, strategically essential market with clear tailwinds from both policy and industrial demand.