LONDON (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.