Canadian specialty semiconductor manufacturer receives $18 million to expand refining capacity in the United States
The U.S. Department of Defense is moving to strengthen domestic production of the critical mineral germanium. On Thursday, it announced an investment of more than $18 million in 5N Plus Inc. (5N+), a Canadian producer of specialty semiconductors and advanced materials. The funding will be used to significantly expand refining capacity at the company’s production facility in the U.S. state of Utah, to more than 20 tonnes per year, a sevenfold increase. The support will also back 5N+’s plans to source germanium in the future from domestic feedstocks that have so far been underutilized or unexplored.
Although the investment was made on December 15, its announcement was delayed, according to the Department of Defense, due to last year’s federal government shutdown.
Germanium: Critical for Military Technology, Heavy Dependence on China
Beyond civilian uses, germanium is of high strategic importance for the defense sector. It is used in infrared optics and night-vision systems, as well as in solar cells that provide power for satellites. The funding for 5N+ is intended to help secure and strengthen these supply chains.
The United States remains heavily dependent on germanium imports from China. Beijing even imposed an export ban on shipments to the U.S. in 2024, which it later temporarily lifted. According to data from China’s customs authorities, export volumes to the U.S. had already fallen to minimal levels before the official ban took effect.
The newly disclosed investment is rooted in an executive order issued by U.S. President Donald Trump in March (we reported), aimed at accelerating domestic production of critical minerals and related goods while reducing reliance on China. As part of this strategy, the Pentagon has already taken several steps, most notably its investment in MP Materials, the largest rare earth producer in the United States.
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