U.S. Government Details $18.5M Investment into Lattice Materials for Germanium, Silicon Optics Production
WASHINGTON, D.C., Dec. 26. 2025 — The Department of War, formerly known as the Department of Defense, has invested $18.5 million in Defense Production Act Title III funds to Lattice Materials. Announcement of the investment, which occurred Sept. 26, was delayed due to the government shutdown earlier this year. The government funding, sourced in part from the Additional Ukraine Supplemental Appropriations Act of 2022, will increase Lattice’s germanium and silicon crystal production capacity, essential for the optics supply chain, at its Bozeman, Montana facility, according to a press release.
The investment comes amid supply chain anxiety related to the ongoing trade war between the U.S. and China, which dominates the global germanium market. According to Reuters, Chinese restrictions on the materials were implemented between August 2023 and September 2024, before China implement a ban on the U.S.'s acquisition of the materials last December, responding to Washington's targeted restrictions in the chip sector. China has since suspended its ban on the exports of gallium, germanium, and antimony, although access to the materials remains subject to broader export controls.
“This investment will help ensure a secure supply of germanium and silicon-based optics for surveillance, reconnaissance, and targeting capabilities that our warfighters need,” said Assistant Secretary of War for Industrial Base Policy Mike Cadenazzi.
Lattice is a manufacturer of germanium and silicon infrared optical lenses, windows, and mirrors used in many defense optics systems. The company plans to use the funds to increase its capacity to produce optical grade germanium and silicon crystals, as well as establish capability to produce germanium metal from recycled scrap. This project will additionally scale Lattice's current capabilities in crystal growth and optics manufacturing and achieve increased capacity for DOW applications.
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