Korea Zinc, the world's largest zinc smelter, announced Tuesday that it signed a memorandum of understanding with US defense giant Lockheed Martin for the supply and procurement of germanium and collaboration on critical mineral supply chains.
The partnership, aligning with Korea-US discussions on economic security cooperation, is particularly significant as it sets a precedent in securing non-Chinese sources of critical minerals.
The event was attended by major business officials from South Korea and the US, following President Lee Jae Myung's first summit with US President Donald Trump.
Under the agreement, Korea Zinc will provide Lockheed Martin with germanium refined and produced in countries excluding China, North Korea, Iran, and Russia. In return, Lockheed Martin will purchase the material through an off-take agreement. Both sides plan to hold further discussions on long-term contracts.
China currently dominates global germanium production, accounting for about 68 percent of the refined supply as of 2021. As export controls and geopolitical tensions escalate, Korea Zinc’s move represents a strategic step toward building a more resilient and diversified supply chain.
Aligned with the MOU, Korea Zinc plans to invest approximately 140 billion won ($100.7 million) to build a germanium plant at its Onsan Smelter in Ulsan. Slated to begin operations in the first half of 2028, the facility will produce around 10 tons of high-purity germanium dioxide annually.
“As a leading player in Korea’s key industries, stabilizing the critical mineral supply chain is a vital national strategy,” a Korea Zinc official said. “Through this partnership, we aim to strengthen bilateral ties and actively contribute to economic security through public-private cooperation.”
hyelimchung@heraldcorp.com
