Korea Zinc plans to supply high-purity germanium the usage of raw materials obtained outside of China and give the supply to Lockheed Martin.
Korea Zinc, the world’s biggest zinc smelter, signed a Memorandum of Under standing (MoU) with Lockheed Martin, the world’s main defence corporation, on August 25 for the deliver and procurement of germanium and cooperation within the essential minerals supply chain. The MoU, want after in step with continuing Korea-US discussions on economical security cooperation, includes great significance because it goal for the generation of a ‘China-free’ essential minerals supply chain, and marks the first successful case of Korea-US collaboration in the field of essential rare metals.
The MoU states that Korea Zinc will supply Lockheed Martin with germanium processed (covering the whole process from mining to manufacturing) outside of China, North Korea, Iran, and Russia, and that Lockheed Martin will aim for an offtake agreement, securing precedence rights to acquiring this output. Based at the MoU, the two corporations will be starting detailed discussions towards signing a long-time period agreement.
China dominance
Germanium is a main material used in the defence industry for night time-vision goggles, thermal imaging cameras, and infrared detectors. It is also employed in the space industry for solar panels that power satellites. Also, it’s broadly used in advanced technology fields such as high-performance semiconductor devices, specialty gases for semiconductor processing, LEDs, fibre optic cables, and superconductors. Recently, the world’s largest producer of germanium is China. According to KOTRA, as of 2021, 68% of the worldwide refined germanium output of a 140 tons started from China. The US Geological Survey (USGS) has like wise diagnosed China as the main nation among those who commercially develop germanium. With useful resource weaponization trends intensifying, and increasing concerns over the attention of resources manufactruing in certain nations, the establishment of strong supply chains has emerged as an urgent global precedence. In line with the MoU, Korea Zinc plans to make investments approximately KRW a 140-bn in its Onsan Smelter in Ulsan to set up a new germanium plant. Following trial operations in 2027, the corporations goals to start manufacturing in the first half of 2028, with plans to supply high-purity germanium dioxide (quantity equal to about 10 tons of germanium metal). This development will position Korea Zinc because the only domestic manufacturer of germanium in South Korea.
“Through the signing of this MoU with Lockheed Martin, we goal to reinforce the strategic partnership between Korea and the United States whilst actively contributing to private-quarter cooperation within the realm of economic security,” a Korea Zinc representative stated.
