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SEOUL - Korea Zinc (KRX:010130), the world’s largest zinc smelter, signed a memorandum of understanding with Lockheed Martin on Monday to supply high-purity germanium produced from raw materials sourced outside China.
The agreement establishes what the companies describe as a "China-free" critical minerals supply chain, as Korea Zinc will produce germanium using materials procured outside China, North Korea, Iran, and Russia. Lockheed Martin will receive priority procurement rights for the output.
Korea Zinc plans to invest approximately 140 billion won ($100 million) to build a new germanium plant at its Onsan Smelter in Ulsan. Following trial operations in 2027, production is expected to begin in the first half of 2028, with plans to produce high-purity germanium dioxide equivalent to approximately 10 tons of germanium metal.
Germanium is a critical material used in defense applications including night-vision goggles, thermal imaging cameras, and infrared detectors. It’s also utilized in satellite solar panels and advanced semiconductor devices.
According to data cited in the company’s press release, China currently produces about 68% of global refined germanium output. The U.S. Geological Survey identifies China as the leading commercial producer of the metal.
The agreement comes amid growing international concerns about resource concentration in certain countries and follows recent Korea-U.S. discussions on economic security cooperation.
Korea Zinc Chairman Yun B. Choi and Lockheed Martin International President Michael Williamson attended the signing ceremony, along with other executives from both companies.
Korea Zinc is currently the sole South Korean producer of other critical minerals including antimony, indium, and bismuth. The company began exporting antimony to the United States in June and plans to expand export volumes to over 100 tons this year.
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