The Department of War announced today a September 26, 2025, investment of $18.5 million in Defense Production Act (DPA) Title III funds to Lattice Materials (Lattice). Announcement of this investment was delayed due to the government shutdown. The investment will increase Lattice's germanium and silicon crystal production capacity, which is essential for the optics supply chain, at its Bozeman, Montana, facility, thus reducing lead times and increasing readiness for multiple key platforms. This investment uses funds from the Additional Ukraine Supplemental Appropriations Act of 2022. It also supports the Administration's goal to increase the production of processed critical minerals and other derivative products as articulated in the March 20, 2025, Executive Order 14241 - Immediate Measures to Increase American Mineral Production.
"Mitigating supply chain vulnerabilities and expanding domestic production for critical minerals is one of DOW's highest priorities," said Assistant Secretary of War for Industrial Base Policy Mike Cadenazzi. "This investment will help ensure a secure supply of germanium and silicon-based optics for surveillance, reconnaissance, and targeting capabilities that our warfighters need."
Lattice is a leading U.S. manufacturer of germanium and silicon infrared optical lenses, windows, and mirrors used in many defense optics systems. Using these funds, Lattice will 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 scale Lattice's current capabilities in crystal growth and optics manufacturing and achieve increased capacity for DOW applications.
"Optics are a pacing item for major weapons platforms across all the military Services," added Mr. Jeffrey Frankston, Acting Deputy Assistant Secretary of War for Industrial Base Resilience, which oversees the Manufacturing Capability Expansion and Investment Prioritization (MCEIP) directorate. "Alleviating bottlenecks in our germanium supply chain will have an outsized impact on readiness."
This is one of 19 investments made by the DPA Purchases Office totaling $906.0 million in fiscal year 2025. Recipient cost shares total $88.0 million in FY 2025. The MCEIP directorate oversees the DPA Purchases Office.
For more information on MCEIP, please visit: https://www.businessdefense.gov/ibr/mceip/index.html.
About the Office of the Assistant Secretary of War for Industrial Base Policy (OASW-IBP)
The OASW(IBP) works with domestic and international partners to forge and sustain a robust, secure, and resilient industrial base enabling the war fighter, now and in the future. OASW(IBP) also uses a new Defense Industrial Base Consortium Other Transaction Agreement (DIBC OTA) to solicit new ideas for research or prototype project solutions for critical supply chain resiliency focus areas. This OTA underscores the Department's ongoing dedication to safeguarding the integrity of our crucial supply chain and promptly giving our warfighters the materials and technologies they need to accomplish their missions. To learn more about the DIBC OTA, please visit: https://www.dibconsortium.org.