US Bets $18.1M on Utah Plant to Break China's Grip on Critical Mineral

By James Walker

ST. GEORGE, UT – January 30, 2026 – The U.S. government has awarded a US$18.1 million grant to specialty materials producer 5N Plus Inc. to dramatically expand its germanium recycling and refining capabilities in Utah, a strategic move aimed at shoring up a critical national security supply chain currently dominated by China.

The investment, drawn from Defense Production Act (DPA) Title III funds, will enable the Montreal-based company to significantly increase its output of high-purity germanium—a metalloid essential for infrared optics, night vision systems, and the advanced solar cells that power military and commercial satellites. The move directly addresses escalating concerns in Washington over reliance on foreign nations for materials vital to defense and high-tech industries.

Bolstering a Fragile Supply Chain

The grant is a direct consequence of a years-long effort by the U.S. to mitigate vulnerabilities in its mineral supply chains, a weakness starkly highlighted by recent geopolitical events. Germanium is on the U.S. Geological Survey's official list of critical minerals, not because of its rarity in the earth's crust, but due to the high concentration of its processing and production in a handful of countries. China currently accounts for over 60% of the world's germanium supply, giving it immense leverage.

This leverage was put on display in July 2023 and again in December 2024, when Beijing imposed export controls on germanium and other critical materials, sending shockwaves through defense and technology sectors and causing significant price volatility. The actions were widely seen as a response in the ongoing U.S.-China tech rivalry, underscoring the urgency for the U.S. and its allies to develop alternative sources.

This $18.1 million investment, authorized under Executive Order 14241, "Immediate Measures to Increase American Mineral Production," is part of a broader strategy to onshore the production of these essential materials. By funding the expansion at the 5N+ facility in St. George, the Department of War aims to create a reliable domestic source for the germanium wafers that are indispensable for next-generation surveillance, reconnaissance, and targeting systems.

From Industrial Waste to High-Tech Wafers

At the heart of the initiative is a plan to transform industrial by-products into one of the most advanced materials on the planet. The federal funds will allow 5N+ to enhance its proprietary refining technologies over the next 48 months, gradually increasing its capacity to recover and purify germanium from industrial residues and mining waste.

The goal is to eventually valorize up to 20 metric tons of high-purity germanium per year at the Utah facility. This represents a sevenfold increase in the plant's output and will provide a significant boost to the domestic supply chain for optics and solar applications.

"This award reinforces our unique leadership position as a trusted partner with the sourcing, refining and manufacturing expertise to supply high-purity specialty semiconductors to key customers for mission-critical applications," said Gervais Jacques, President and CEO of 5N+, in a statement. "We are proud that our St. George, Utah facility has once again been recognized as a key partner to the U.S. government."

The company specializes in producing dislocation-free, electrically-uniform, and space-qualified germanium wafers. These pristine discs form the substrate for high-efficiency solar cells used on satellites, where performance and durability are paramount, and serve as the lenses and windows for thermal imaging systems that allow soldiers to see in complete darkness.

The Sustainable Edge in a High-Stakes Market

Beyond the geopolitical implications, the project champions a more sustainable approach to resource management. Germanium is not typically mined on its own; it is a byproduct of zinc ore processing and can also be found in certain types of coal ash. By focusing on recycling from industrial residues, 5N+ is effectively practicing a form of "urban mining," creating a circular economy for a critical element.

This method carries significant environmental advantages over primary extraction. Research indicates that producing germanium from recycled sources can reduce greenhouse gas emissions by an average of 80% compared to primary production. The carbon footprint of recycled germanium is up to 95% smaller than that of germanium derived from coal, a process that is both energy-intensive and a source of air pollutants.

While the recycling process itself is complex and requires significant energy, it avoids the habitat destruction, soil contamination, and water pollution associated with new mining operations. The investment in 5N+'s advanced refining technology is therefore a dual victory for U.S. policy: it simultaneously enhances national security while promoting a more environmentally responsible industrial base.

This is not the first time the Department of Defense has partnered with 5N+. In 2024, the company received a US$14.4 million award to specifically enhance the supply of space-qualified germanium substrates. The latest grant deepens this strategic relationship, positioning the Canadian-based company as a cornerstone of the North American critical minerals ecosystem, alongside other key players like Canada's Teck Resources. The investment underscores a clear strategy: leveraging the technological expertise of trusted allies to build a resilient and secure supply chain for the future of technology and defense.