Pentagon strikes deal with Canada’s 5N Plus

The US Department of Defense made an $18 million investment in Canada’s 5N Plus Inc. to help the company expand refining capacity for germanium metal, which is used in night-vision systems and other applications.

“Our warfighters depend on next-generation optics for surveillance, reconnaissance and targeting, and germanium is a key element in their manufacture,” Mike Cadenazzi, a Pentagon official, said in a statement announcing the deal.

The US has been looking to secure supplies of critical minerals to reduce risks and lower the country’s reliance on China. Since 2024, it has unlocked more than $60 million for small Canadian firms producing those materials, including Nano One Materials Corp. for lithium iron phosphate cathodes and other firms that produce graphite and tungsten.

The Defense Department has worked with 5N Plus since 2020 to improve semiconductor-production processes for space programs and to make germanium wafers used in solar cells for defense and commercial satellites.

Shares of Montreal-based 5N Plus have increased more than 650% over the past three years. Management told analysts in November that several demand trends, including solar energy and the acceleration of artificial intelligence, will continue to support its growth this year.

The firm, which started in 2000 as a provider of materials for medical imaging, now has market capitalization of more than C$2 billion ($1.5 billion).

5N Plus sources its germanium from Teck Resources Ltd. in Canada, as well as from Umicore SA and Nyrstar NV in Europe and scrap recyclers in the US. It’s manufactured into germanium wafers at a 5N Plus facility in St. George, Utah.

“This award will allow 5N Plus to greatly expand its refining capacity for germanium metal and also support the company’s plans to source germanium from underutilized and previously untapped domestic sources,” 5N Plus chief executive officer Gervais Jacques said in a statement to Bloomberg News.

In September, Jacques told Montreal-based news outlet La Presse that the company plans to make a mid-size acquisition in the US, followed by smaller ones, to expand its manufacturing capacity.

(By Mathieu Dion)