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26 Aug 2025
Memorandum of understanding plans for China-free supply of critical element for thermal imagers and night-vision goggles.
Metals supplier Korea Zinc and Lockheed Martin have announced plans to establish a “China-free” supply of germanium for the US defense giant.
The chemical element is critical to many optics applications - including thermal imagers, infrared sensors, and night vision goggles produced by the US military contractor.
Now a memorandum of understanding (MOU), signed by the two companies in a ceremony alongside US Secretary of Commerce Howard Lutnick and Korea’s Minister of Trade, Industry and Energy, is said to mark the first successful collaboration between private-sector US and Korean firms in the field of critical rare metals.
“Both companies agreed to take the recent Korea-US summit as an opportunity to accelerate the establishment of a China-free critical minerals supply chain at the private-sector level, and to work together to create a successful example of supply chain cooperation,” announced Korea Zinc.
“The MOU stipulates that Korea Zinc will supply Lockheed Martin with germanium smelted (covering the entire process from mining to production) outside of China, North Korea, Iran, and Russia, and that Lockheed Martin will pursue an off-take agreement, securing priority rights to procuring this output.
“Based on the MOU, Korea Zinc and Lockheed Martin will be beginning detailed discussions toward signing a long-term contract.”
China ban
While Lockheed requires germanium for its military products, the element is also critical for commercial infrared imaging technology, as well as high-efficiency solar panels used to power satellites, various semiconductor devices, LEDs, fiber-optic cables, and superconductors.
China is by far the world's largest producer of germanium, with figures from the Korean government agency KOTRA suggesting that, in 2021, 68 per cent of the global refined germanium output of 140 tons originated from the country.
But in December 2024 the Chinese government banned the direct sale of germanium and gallium to US companies, in response to new US restrictions on Chinese semiconductor makers.
That has prompted efforts to seek alternative sources of the critical element, and the use of alternative materials such as LightPath Technologies’ “BlackDiamond” chalcogenide glass - although it is also believed that plenty of China-exported germanium has since reached the US via other countries, and Belgium in particular.
“With resource weaponization trends intensifying, and growing concerns over the concentration of resource production in certain countries, the establishment of stable supply chains has emerged as an urgent international priority,” stated Korea Zinc.
Smelter investment
The MOU signed with Lockheed Martin includes plans for Korea Zinc to invest approximately KRW 140 billion (around $100 million) in its Onsan Smelter in Ulsan - in the southeast of Korea - to establish a new germanium plant.
“Following trial operations in 2027, the company aims to begin production in the first half of 2028, with plans to produce high-purity germanium dioxide (amount equivalent to approximately 10 tons of germanium metal),” stated the firm. “This development will position Korea Zinc as the only domestic producer of germanium in South Korea.”
An unspecified company representative added: “As a company representing Korea's national key industries, stabilizing the supply chain for critical minerals is a highly important strategic task for both the government and the private sector in terms of national interest.
“Through the signing of this MOU with Lockheed Martin, we aim to strengthen the strategic partnership between Korea and the US while actively contributing to private-sector cooperation in the realm of economic security.”
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