Korea Zinc and Lockheed Martin Join Forces to Secure Germanium Supply Chain

Strategic Partnership: Korea Zinc and Lockheed Martin

In a landmark development for the defense industry, Korea Zinc and Lockheed Martin have signed a Memorandum of Understanding (MOU) aimed at securing the supply of germanium, a critical material utilized in various advanced technologies. The signing ceremony, held on August 25, 2025, marked a crucial step in establishing a resilient supply chain that aims to eliminate dependence on China for this essential resource.

Background of the Partnership

Yun B. Choi, the Chairman of Korea Zinc, expressed that this MOU aligns with ongoing discussions about economic security between Korea and the United States, paving the way for a more stable supply chain for critical minerals. This initiative was further emphasized during a recent Korea-U.S. summit, where both governments and private sectors were encouraged to join forces in ensuring a secure procurement process.

The agreement entails that Korea Zinc will produce high-purity germanium using raw materials sourced exclusively from outside China, North Korea, Iran, and Russia. This is a significant move considering that China is currently the world's largest producer of germanium, accounting for approximately 68% of global refined output.

The Role of Germanium

Germanium plays a vital role in the defense sector, where it is used in manufacturing night-vision goggles, thermal imaging cameras, and infrared detectors. Moreover, its applications extend to the aerospace industry, where it powers solar panels for satellites. With the rising demand for germanium, particularly in semiconductor technology, establishing a stable non-Chinese supply chain has become increasingly critical.

Development of a Germanium Plant

To facilitate this partnership, Korea Zinc has announced plans to invest around KRW 140 billion in a new germanium processing facility at its Onsan Smelter in Ulsan. This plant is expected to begin production in the first half of 2028, targeting an output of approximately 10 tons of high-purity germanium dioxide, which is instrumental in various high-tech applications.

Korea Zinc's long-term vision positions it as the only domestic producer of germanium in South Korea, following successful developments in other strategic mineral sectors such as antimony and indium. The company has continually demonstrated its commitment to advancing Korea's interests in the field of critical minerals.

Strengthening U.S.-Korea Relations

Lockheed Martin, well-known for its robust ties with South Korean industries and government, has increasingly focused on enhancing its supply chain resilience amid growing geopolitical tensions. The defense contractor produces pivotal systems like the F-22 Raptor and F-35 fighters. With a significant backlog of contracts, Lockheed aims to ensure a consistent supply of critical materials like germanium to support its expansive operations.

As part of this collaboration, Lockheed Martin will pursue an off-take agreement with Korea Zinc, aiming to secure priority rights for procurement. The detailed discussions towards a long-term contract will be initiated soon, marking a significant cooperative effort in maintaining the U.S.-Korea economic alliance.

Looking Ahead

This partnership not only signifies a step forward in securing critical minerals for defense and aerospace applications but also emphasizes the vital role of cooperation between governments and private sectors. As global dynamics shift and the need for secure supply chains escalates, this collaboration between Korea Zinc and Lockheed Martin serves as a model of how strategic alliances can bolster national and economic security. This MOU stands to benefit both parties while contributing positively to broader economic cooperation in the Korea-U.S. relationship.