One American company is working to replace a key, rare earth mineral used by the military by using a technology of its own. LightPath Technologies , an Orlando, Florida-based optics and photonics provider that came public 30 years ago, won a buy rating as Canaccord Genuity began research coverage of the $600 million microcap on Wednesday. Canaccord cited LightPath's groundbreaking work to develop optical components and infrared imaging systems solely using U.S. and European resources as a bullish sign for shares. China has long dominated the rare earths market , and produces 67% of the world's germanium, a vital component in developing military imaging, fiber optic communications and solar cells, Canaccord analyst Austin Moeller wrote in a 33-page report. China and Russia together produce 90% of the world's germanium and gallium, another critical element used in infrared technology. Chinese export controls on rare earth minerals have complicated domestic manufacturing. "Following China's implementation of export license restrictions for germanium and other dual-use rare earth elements in 2024, U.S. Germanium imports plunged 8.3% in 2024 and a shocking 76% y/y from May-July of 2025," as trade tensions mounted, Moeller wrote LightPath makes a chemical compound, chalcogenide, that can be integrated into infrared camera designs and is an alternative to using germanium. Its "BlackDiamond" glass material is produced under an exclusive technology license from the Naval Research Laboratory. LPTH 1Y mountain LPTH 1-year chart Moeller noted that LightPath's domestically-produced BlackDiamond glass is less dense, has a lower weight and is cheaper to make than optical equipment using germanium. LightPath is now marketing germanium-free infrared cameras to customers, and Moeller added said existing infrared cameras may be converted to BlackDiamond glass too. LightPath is also a play on the drone supply chain, Canaccord said. The Pentagon plans to buy one million drones in the next two to three years, according to a Reuters report in November , and LightPath in September received an $8 million investment from Ondas Holdings and Unusual Machines , two drone manufacturers, to use its technology. "We believe LPTH's strategy to move up-market into higher [average selling prices], higher margin sales of full camera systems and assemblies, combined with a focus on the [infrared] imaging market will drive robust growth for the business over the next few years, given the current demand environment across both defense, public safety and industrial inspection markets," Canaccord wrote. The investment bank's 12-month, $15 price target implies nearly 33% upside from Wednesday's close. LightPath has more than tripled in the past six months, soaring 280%.
