Today, Korea Zinc announced it has entered into a strategic partnership with the U.S. Department of War and the U.S. Department of Commerce, which will jointly invest in the construction of a 650,000 m² smelter in Clarksville, Tennessee.
The project, referred to as the “U.S. Smelter,” is expected to have $6.6 billion in capital expenditures, with a total planned investment of $7.4 billion including working capital and financing costs.
According to the company, “As geopolitical competition over natural resources intensifies globally and certain countries increasingly exert influence over critical mineral supply chains, the project is expected to strengthen U.S.-ROK economic security cooperation while contributing significantly to global supply chain diversification.”
Commerce Secretary, Howard Lutnick stated, “Korea Zinc’s critical minerals project in Tennessee is a transformational deal for America. Our country will now produce, in volume, 13 critical and strategic minerals that are vital to aerospace and defense, semiconductors, AI, quantum computing, autos, industrials, and national security. With our investment in this state-of-the-art project, we are decisively strengthening our national and economic security by producing these critical minerals at scale and thus reducing dependence on foreign nations. Additionally, the United States has preferred access to a portion of Korea Zinc’s expanded production in South Korea.”
Deputy Secretary of War, Steve Feinberg, commented, “President Trump has directed his Administration to prioritize critical minerals as essential to America’s defense and economic security. The Department of War’s conditional investment of $1.4 billion to build the first U.S.-based zinc smelter and critical minerals processing facility since the 1970s reverses 50 years of industrial decline. The new smelter in Tennessee creates 750 American jobs to unlock strategic minerals as a force multiplier across aerospace, defense, electronics, and advanced manufacturing without chokepoints.”
The Tennessee project aims to develop an integrated smelter that produces both base metals and critical, strategic minerals, with phased commercial operations scheduled for 2029.
Korea Zinc shares jumped 4.9% following the announcement.
By CEO NA Editorial Staff
