US Invests $18.5M in Montana Firm to Secure Critical Defense Materials

BOZEMAN, Mont. – December 29, 2025 – The U.S. Department of War has awarded $18.5 million to Lattice Materials, a specialized Montana-based manufacturer, in a strategic move to bolster the domestic supply chain for materials essential to advanced military optics. The investment, made through Title III of the Defense Production Act (DPA), aims to counter growing geopolitical risks and reduce America's reliance on foreign nations, particularly China, for germanium and silicon—two minerals at the heart of modern warfare technology.

Lattice Materials, one of the few U.S. companies capable of custom-growing high-purity silicon and germanium crystals, will use the funds to significantly expand its production capacity. This initiative directly addresses vulnerabilities in the supply of components for thermal targeting systems, missile guidance, and airborne sensors that are critical for protecting U.S. warfighters and maintaining a technological edge.

A Strategic Counter in a New Mineral War

The Pentagon's investment is not happening in a vacuum. It is a direct response to an increasingly fraught global supply chain, most notably impacted by China's recent export restrictions on germanium. As the world's dominant producer, China's move sent shockwaves through the defense and technology sectors, highlighting a critical dependency. In 2023, over half of U.S. germanium imports came from China, a reality the Department of War now considers an unacceptable risk to national security.

This award is a key part of a broader U.S. strategy to reshore critical industrial capabilities. It advances the objectives laid out in Executive Order 14241, signed on March 20, 2025, which calls for immediate action to boost domestic production of critical minerals. The funding itself was allocated through the Additional Ukraine Supplemental Appropriations Act of 2022, demonstrating how lawmakers are leveraging existing financial mechanisms to address urgent and evolving national security priorities.

Germanium is officially listed by the U.S. Geological Survey as one of 50 minerals deemed essential for the nation's economic and military security. Its use in high-performance infrared optics is irreplaceable for many applications. By investing in domestic producers like Lattice, the Department of War's Industrial Base Policy office is actively working to mitigate supply chain disruptions and ensure the U.S. military has unfettered access to the materials it needs.

"A trusted and proven producer of engineered germanium and silicon solutions is imperative in the development of critical systems for those on the front lines," said Scott Bekemeyer, founder and co-chairman of The Partner Companies (TPC), Lattice's parent company. "With countries like China limiting their germanium exports, Lattice and TPC have an opportunity to expand germanium solutions for the defense industry with absolute confidence."

From Montana Mountains to High-Tech Manufacturing

Nestled in Bozeman, Lattice Materials has quietly honed its highly specialized craft for over three decades. The company is an expert in the Czochralski crystal growth process, a complex method that involves pulling a large, single-crystal ingot from a molten pool of purified germanium or silicon. This technique requires deep technical knowledge and precision equipment to produce crystals with the exact diameter, orientation, and electrical properties demanded by sophisticated defense systems.

The $18.5 million in DPA funding will empower Lattice to scale its operations significantly. A key part of the expansion involves not just producing more crystals, but also establishing a new capability to produce germanium metal from recycled scrap materials. This move towards a circular economy will further insulate the U.S. supply chain from global shocks by creating a sustainable, domestic source of the critical metalloid.

"We've seen unprecedented demand for secure, U.S.-made solutions across the industries we serve, especially within aerospace and defense," said Travis Wood, president of Lattice Materials. "We are grateful for the DoW's investment in expanding our production capacity, which will help strengthen domestic supply chains and ensure that the advanced technologies our components enable are available when and where they're needed most."

This investment is expected to bolster the high-tech manufacturing sector in Montana, reinforcing the idea that critical national security assets can be cultivated far from traditional industrial hubs. The expansion will not only increase output but also strengthen the domestic knowledge base for a manufacturing process that few in the world have mastered.

The Unseen Components Protecting the Warfighter

While the discussion often centers on policy and economics, the tangible impact of this investment will be felt on the battlefield. The germanium and silicon crystals grown by Lattice are the foundational materials for the lenses, windows, and mirrors used in a vast array of electro-optical/infrared (EOIR) systems. These systems are the military's eyes in the dark, allowing forces to detect, identify, and engage threats in all weather and light conditions.

Germanium is particularly prized for its unique ability to be transparent to long-wave infrared radiation—the heat signatures emitted by vehicles, soldiers, and equipment. This property makes it the material of choice for thermal cameras in individual weapon sights, advanced targeting pods on fighter jets, and the guidance systems in precision missiles. Its durability and temperature stability ensure these systems perform reliably in the harsh environments of military operations.

Optical-grade silicon, while less expensive, serves as a crucial alternative for mid-wave infrared applications. Its lower density and superior hardness make it ideal for protective windows on airborne sensor pods, where weight and resistance to abrasion are paramount. By increasing domestic production of both materials, the Pentagon ensures that the pipeline for these life-saving technologies remains robust and secure.

The custom nature of Lattice's work is vital. Unlike off-the-shelf components, the crystals are grown to the exact specifications required for each unique system, maximizing performance and reliability. This investment ensures that as U.S. defense technology evolves, the underlying material science can keep pace, providing warfighters with a decisive advantage and a greater margin of safety during their missions.