Teck Resources and the Strategic Shift in North American Defense Mineral Supply Chains

In 2025, the global race for critical minerals has intensified, driven by geopolitical tensions, supply chain vulnerabilities, and the urgent need to secure materials essential for defense and technology. At the forefront of this shift is Teck Resources, a Canadian mining giant strategically positioned to capitalize on North America's push to reduce reliance on Chinese-dominated supply chains. With its focus on defense-critical minerals like germanium, gallium, and antimony, Teck is not just a supplier but a linchpin in the region's efforts to fortify its mineral security.

Geopolitical Tailwinds: A Catalyst for Teck's Strategic Expansion

The U.S. and Canada have prioritized critical mineral self-sufficiency after China's export restrictions on rare earth elements and other materials. According to a China Strategy report, Teck is in active negotiations with both governments to secure price floors, stockpiling agreements, and infrastructure support for its operations. CEO Jonathan Price has boldly claimed the company could meet all of North America's germanium needs and potentially supply G7 allies, a mineral critical for semiconductors, thermal imaging, and night-vision systems, according to China Strategy. This aligns with broader U.S. policies, including the Trump administration's 50% copper tariff and the Revitalizing America's Offshore Critical Minerals Dominance Act, which, according to a GovFacts analysis, aim to insulate domestic industries from foreign disruptions.

Teck's strategic value is further amplified by its byproduct recovery model. Germanium, gallium, and antimony are extracted as byproducts of zinc and copper operations, such as its Red Dog mine in Alaska and Trail Operations in British Columbia. This approach minimizes costs while maximizing output for defense-critical materials. As noted by Reuters, Teck's U.S. exports of germanium are tariff-exempt under the USMCA trade agreement, reinforcing cross-border collaboration.

Market Dynamics: Demand Surges Amid Supply Constraints

The 2025 Global Critical Minerals Outlook reveals a 6–8% annual increase in demand for rare earth elements, nickel, and cobalt, driven by energy transitions and defense modernization. However, China's dominance in processing-controlling 60–90% of global capacity-creates acute risks. For instance, China's export restrictions on gallium and tungsten (used in radar systems and armor-piercing munitions) have exposed vulnerabilities in Western supply chains, a point highlighted by Reuters.

Teck's response? A dual strategy of capacity expansion and partnership diversification. The company recently invested $40 million in Idaho's Bunker Hill Mining Corp. to secure zinc and lead concentrates, which will feed into its Trail Operations and boost germanium output, the GovFacts analysis notes. Simultaneously, Teck is reconfiguring processing facilities to increase byproduct recovery rates, a move China Strategy has also reported is critical for meeting surging demand.

Yet challenges persist. At its Quebrada Blanca copper operation in Chile, infrastructure bottlenecks have forced Teck to slash 2025 production forecasts, according to Discovery Alert. This underscores the fragility of even well-positioned miners in an era of extreme weather and geopolitical volatility.

The Anglo American Merger: A Game-Changer for Copper Security

Teck's impending merger with Anglo American-a deal highlighted in Forbes-signals a bold step toward reshaping global copper supply chains. Copper, a cornerstone of both renewable energy infrastructure and defense systems, faces supply deficits as demand outpaces production. By combining Teck's North American assets with Anglo American's global scale, the merged entity could address bottlenecks and stabilize prices, offering a hedge against China's influence.

Investment Implications: Balancing Risk and Reward

For investors, Teck represents a compelling intersection of geopolitical necessity and operational resilience. While its exposure to volatile commodity prices and operational risks (e.g., Quebrada Blanca) cannot be ignored, the company's alignment with U.S.-Canada defense priorities and its role in critical mineral byproduct recovery create a strong tailwind.

Conclusion: A Strategic Asset in a Fragmented World

As North America races to decouple from adversarial supply chains, Teck Resources stands out as a critical enabler of mineral security. Its ability to navigate geopolitical headwinds, leverage byproduct synergies, and align with U.S. and Canadian policy goals positions it as a must-watch for investors seeking exposure to the defense-critical minerals boom. However, success will depend on executing its expansion plans and mitigating operational risks-a challenge that, if met, could redefine its role in the global mining landscape.