Korea Zinc germanium supply to Lockheed Martin signals new non-China source

Korea Zinc

Korea Zinc germanium supply to Lockheed Martin marks a strategic breakthrough. The Korea Zinc germanium supply will prioritize Lockheed Martin under a new MoU. As a result, Korea Zinc germanium supply strengthens allied access to a China-constrained material.

Korea Zinc will invest ₩140bn to add germanium at Onsan. The Ulsan plant will produce high-purity germanium dioxide equal to 10 t/yr. That output equals roughly 7–8pc of present global germanium production. The firm targets trial operations in 2027 and full output in early 2028.

China controls 68pc of global germanium production today. Beijing’s 2023 export controls tightened supply and spiked prices. Therefore, US and allied buyers are racing to secure diversified germanium sources.

Lockheed’s priority rights reshape critical minerals procurement

Lockheed will gain priority rights under the MoU framework. The parties will now negotiate a long-term offtake agreement. Priority access helps de-risk defense programs using infrared optics and semiconductors. It also aligns with US policies to localize sensitive supply chains.

Korea Zinc already ships other critical minerals to the US. The firm delivered 20t of antimony to the US in June. Its portfolio also includes iridium and bismuth for high-tech uses.

What 10 t/yr means for defense and photonics demand

Ten tonnes per year can meaningfully support advanced optics. Germanium enables thermal imaging, night vision, and satellite sensors. It also serves fiber-optic and semiconductor applications in data and 5G.

However, end-use demand remains concentrated and quality-sensitive. High-purity germanium dioxide must meet tight infrared specifications. As a result, early 2027 trials will be critical to qualify volumes. Successful qualification would anchor multi-year defense procurement planning.

The Metalnomist Commentary

This deal is small in tonnage but large in signal value. If Onsan meets purity and schedule, expect copycat agreements across allied OEMs. Watch pricing, permit milestones, and wafer-grade yields as leading indicators.