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Teck Resources Considers Boosting Germanium Output Amid Geopolitical Tensions

Teck Resources (TSX: TECK.A/TECK.B) is exploring options to expand its production of germanium—a critical metal essential to chipmaking and national security—as global supply chains face increased strain.

According to Doug Brown, Vice President of Communications and Government Affairs at Teck, the company is in discussions with both Canadian and U.S. authorities regarding potential funding to enhance its germanium processing capabilities. The strategic move comes in response to escalating global demand and rising concerns over supply disruptions.

Germanium, designated by the U.S. Geological Survey as one of 50 critical minerals vital to the nation’s economy and defense, plays a crucial role in the manufacture of semiconductors, infrared optics, solar cells, and fiber optic cables. However, the supply chain is heavily dominated by China, which currently controls approximately 60% of global output.

Since 2023, China has imposed export restrictions on germanium—alongside gallium and antimony—citing national security concerns amid ongoing trade tensions with the United States. These restrictions have intensified pressure on Western nations to secure alternative sources.

Vancouver-based Teck Resources is currently North America’s largest germanium producer and ranks fourth globally. The company extracts germanium as a byproduct from its Red Dog zinc mine in Alaska, with refining handled in British Columbia before shipping to U.S. markets.

“We’re exploring ways to augment the existing processing line using current technologies,” Brown told Reuters, hinting at plans that could enhance domestic supply resilience.

On Friday, Teck’s Class B shares dipped 0.5% to C$51.87, valuing the company at approximately C$26 billion (US$19 billion).

The potential expansion aligns with broader North American efforts to strengthen critical mineral supply chains, particularly those supporting defense and high-tech industries. In a January speech in Washington, Canada’s Energy and Natural Resources Minister, Jonathan Wilkinson, reaffirmed Ottawa’s commitment to collaborating with the U.S. on critical mineral development.

A November 2024 report by the U.S. Geological Survey estimated that China’s mineral export restrictions could cost the U.S. economy up to $3.4 billion, underlining the urgency of securing domestic and allied sources.

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