US Department of National Defense Invests in Canadian Company to Expand Germanium Refining Capacity

According to a report by Bloomberg on Mining.com, the US Department of Defense (DoD) invested $18 million in Canada's 5N Plus Inc. to help the company expand its germanium metal refining capacity. Germanium is used in night vision systems and other application fields.

Mike Cadenazzi, a Pentagon official, stated in an announcement regarding the deal, "Our warfighters rely on next-generation optical technologies for surveillance, reconnaissance, and targeting, and germanium is a critical material for manufacturing these devices."

The US has been seeking secure supplies of critical minerals to reduce risks and external dependencies. Since 2024, the US has invested over $60 million in Canadian small and medium-sized enterprises producing these materials, including Nano One Materials Corp, which produces LFP battery cathode materials, and other enterprises producing graphite and tungsten.

Since 2020, the DoD has been collaborating with the company to improve semiconductor production processes needed for space programs and to produce germanium wafers for solar cells used in defense and commercial satellites.

Over the past three years, the stock price of Montreal-based 5N Plus has increased by more than 650%. In November last year, management discussed several demand trends with analysts, including accelerated developments in solar energy and artificial intelligence, which are expected to drive demand growth this year.

The company, which began supplying materials for medical imaging in 2000, currently has a market capitalization exceeding C$2 billion ($1.5 billion).

5N Plus sources its germanium from Canada's Teck Resources Ltd., Europe's Umicore SA and Nyrstar NV, as well as scrap recyclers in the US. These materials are used to produce germanium wafers at the company's facility in St. George, Utah.

"This funding will enable 5N Plus to significantly increase its germanium metal refining capacity and support its plan to procure germanium from underutilized and previously untapped domestic sources," said Gervais Jacques, the company's CEO.

In September last year, Jacques revealed to Montreal's La Presse that the company plans to make a medium-sized acquisition in the US, followed by a smaller acquisition, to expand its manufacturing capacity.