Korea Zinc Signs MOU for 'Germanium Supply Chain Stabilization' as a Strategic Mineral

Promoting R&D Projects and Expanding Successful Models
Mutual Cooperation for Institutional Improvements to Foster the Industrial Ecosystem

Korea Zinc has signed a win-win cooperation memorandum of understanding (MOU) with the National Rare Metals Center (KORAM) at the Korea Institute of Industrial Technology and HK Materials to stabilize the germanium supply chain. This agreement establishes a close public-private partnership, further accelerating the development of the domestic strategic minerals industry ecosystem.

Korea Zinc participated in the "2nd Rare Metals Industry Development Council" held on the 20th at Peace & Park Convention in Yongsan-gu, Seoul, and signed a win-win cooperation agreement for stabilizing the germanium supply chain with the National Rare Metals Center and HK Materials. From the left, Kyungtae Park, Director of the National Rare Metals Center at the Korea Institute of Industrial Technology; Suhwan Lee, Head of Sales Division at Korea Zinc; Seonghwa Na, Director of Industrial Supply Chain Policy at the Ministry of Trade, Industry and Energy; and Chanwoo Oh, Executive Director of HK Materials. Korea Zinc

On November 20, Korea Zinc announced that it participated in the "2nd Rare Metals Industry Development Council" held at Peace & Park Convention in Yongsan-gu, Seoul, and signed a win-win cooperation MOU to stabilize the germanium supply chain. The council was attended by around 50 representatives from the Ministry of Trade, Industry and Energy, academia, research institutes, and demand companies, who reviewed strategies to enhance industrial competitiveness in the rare metals sector and explored ways to strengthen government-academia-industry cooperation.

Under the MOU, Korea Zinc will develop specific cooperative measures to utilize the germanium it plans to produce from 2028 not only overseas but also domestically. In addition, the company will collaborate with the National Rare Metals Center to promote research and development projects necessary for stabilizing the germanium supply chain. Korea Zinc also aims to identify and expand successful models for stabilizing the germanium supply chain and will work on institutional improvements to foster the related industrial ecosystem.

Germanium is an essential metal used in key advanced industries, including high-performance and specialized semiconductor devices, specialty gases for semiconductor processes, LEDs, optical fiber cables, and superconductors. It is also used as a material in the defense industry for night vision devices, thermal imaging cameras, and infrared sensors. China is the world's largest producer of germanium, accounting for 68% of the global refined germanium production of 140 tons in 2021, according to KOTRA.

In August, Korea Zinc signed a germanium supply and purchase MOU with Lockheed Martin, the world's leading defense company. The company is investing approximately 140 billion won to build a germanium plant with an annual capacity of 12 tons at its Onsan smelter. Korea Zinc also plans to begin producing gallium, another metal with high dependence on China, from 2028. The company will invest 55.7 billion won to establish a process capable of recovering about 15 tons of gallium per year.

A Korea Zinc official stated, "In a situation where global supply chain uncertainties persist, this agreement will serve as an important foundation for strengthening the self-sufficiency of rare metals in Korea. Rare metals are core resources directly linked to Korea's economic security, and Korea Zinc will do its utmost to deliver tangible results that contribute to the stabilization of rare metal supply chains both domestically and internationally."

This content was produced with the assistance of AI translation services.