LONDON, June 20 (Reuters) - Canada's Teck Resources ( TECK )

is weighing options to expand production of

germanium, a strategic metal key to chipmaking, and is currently

talking with governments, including Canada and the United

States, on available funding, said Doug Brown, VP communications

& government affairs.

Teck's plan comes amid growing efforts to diversify supplies

of critical minerals needed for the tech and defence sectors, as

geopolitical tensions and trade barriers complicate access to

materials mainly produced or refined in China.

"We are examining options and market support for increasing

production capacity of germanium," he told Reuters.

China, which supplies around 60% of the world's refined

germanium, restricted exports of the metal - along with gallium

and antimony, all having broad military applications - to the

United States, further escalating trade tensions between the

world's two largest economies following Washington's crackdown

on Beijing's chip sector.

The export curbs were part of a broader effort launched in

2023, when China began imposing restrictions on critical mineral

shipments, citing national security concerns.

By controlling the export of these minerals, China aims to

exert influence over the industries that use them, including

renewable energy, defence, and chip manufacturing.

Germanium is also used in semiconductors and infrared

technology, fibre optic cables and solar cells.

Teck is exploring ways to add to the current processing line

using existing technology as one of the options, Brown said.

Teck is North America's biggest germanium producer, and the

fourth largest globally. Most of its germanium, a by-product of

zinc ore concentrate at its Red Dog operations in Alaska, goes

to the United States, via smelting and refining in British

Columbia.

Canada's germanium exports to the United States are

currently exempt from tariffs as they comply with the USMCA

(United States, Mexico, Canada) trade agreement.

In a speech in Washington last January, Canada's Energy and

Natural Resources Minister Jonathan Wilkinson welcomed

partnerships with the United States to invest in critical

minerals, including germanium.

Canada's Energy Ministry declined to comment on funding for

Teck, while saying that the prime minister is leading broader

trade negotiations with the United States.