The cost of germanium, a rare metal in demand in the defense industry, has soared to record levels over the past 14 years. The price reached almost $5,000 per kilogram, whereas at the beginning of 2023, the metal cost just over $1,000. The main reason for the price spike is a shortage of supplies. China, the world's largest producer of germanium, reduced exports to the United States by 40% year-on-year over the January-July period. The restrictions were Beijing's response to the measures taken by Washington and the Netherlands, which banned the sale of advanced microchips to Chinese companies. The situation was aggravated by sanctions against Russia, which had previously also been a major supplier of metal. As a result, Western countries' access to Russian German was practically closed. «Previously, we could buy 100 kg, but now we consider it a success if we can find at least 10 at a price three to four times higher,» said Lipmann Walton & Co. trader Aaron Jerome. Germanium is used in the manufacture of thermal imagers and optical systems, including fighter aircraft equipment. The annual global demand is estimated at 180-200 tons, while the metal is usually obtained as a byproduct in the production of zinc.
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