Canada set to back Teck’s BC smelter to boost germanium output: report

Canada’s federal government is set to invest hundreds of millions of dollars in Teck Resources’ (TSX: TECK.A, TECK.B)(NYSE: TECK) Trail metals facility in British Columbia to expand germanium output and strengthen North American supply of critical minerals, the Globe and Mail reported.

The funding is expected to come from Natural Resources Canada, the Canada Growth Fund and Export Development Canada (EDC), the Globe said, citing unidentified sources familiar with the transaction.

Energy and Natural Resources Minister Tim Hodgson is scheduled to make a “critical minerals announcement” in Trail Tuesday at 3 p.m. Eastern time, according to a media advisory issued Friday by his ministry. A spokesperson for Natural Resources Canada declined to comment on the Globe story Tuesday morning, referring The Northern Miner to the media advisory.

Largest producer

Vancouver-based Teck is North America’s largest germanium producer, recovering the mineral as a byproduct of its zinc-mining operations in Alaska. The company is Canada’s only supplier of germanium dioxide to the United States.

Germanium is considered essential to defence, semi-conductors and chip manufacturing, but China controls more than 80% of global output. The UShas limited domestic production and processing capacity, highlighting the importance of securing new supply sources.

In May, Titan Mining (NYSE-A: TII) said it was evaluating potential germanium production from its US-based zinc mining in partnership with Teck. 

Titan and Teck envision recovering 13,000 kg a year of germanium from Titan’s Empire State zinc mine in New York state, according to a cooperation agreement signed May 14. U.S. pricing for germanium now tops $6,000 (C$8,520) per kg, Titan CEO Rita Adiani said Tuesday in a statement.

Specialty metal

Germanium is one of the specialty metals that Teck’s Trail complex produces, along with indium and antimony, in addition to refined zinc and lead. The facility is one of the world’s largest integrated zinc and lead smelters.

Canada and the US are among the Western countries that have been seeking to diversify critical mineral supply chains following China’s 2024 decision to impose export restrictions on germanium and antimony sales to the US. Although China suspended the restrictions in late 2025, supply security remains a concern because the US has no domestic germanium production, the Globe said.

Funding the Trail facility would align with Ottawa’s broader push to support critical minerals processing and cut reliance on China. In March, EDC and the Canada Infrastructure Bank (CIB) jointly committed $335 million (C$459 million) in senior debt to fund Nouveau Monde Graphite’s (NYSE: NMG, TSX: NOU) Matawinie project in Quebec through its construction.