Night view of Korea Zinc’s Onsan plant in Ulsan (image provided by Korea Zinc).
SEOUL, Dec. 15 (Korea Bizwire) — Korea Zinc, one of the world’s largest nonferrous metals producers, will invest nearly 11 trillion won (US$7.4 billion) to build a large-scale integrated smelter in Tennessee, a project backed by both the U.S. government and American corporate partners as Washington races to counter China’s tightening control over strategic mineral exports.
The company said Monday that its board approved the plan to establish a joint venture, Crucible JV, with funding from Korea Zinc, U.S. government agencies and U.S.-based strategic investors. Commerce Secretary Howard Lutnick reportedly hailed the move as “a major win” for the United States.
Korea Zinc will channel about 860 billion won into the project, while the joint venture will raise roughly 2.86 trillion won. Additional financing—up to 6.9 trillion won—will come from U.S. policy loans, subsidies and private-sector lending. Under the CHIPS Act, the Commerce Department is expected to provide as much as 300 billion won in federal grants.
Industry Minister Kim Jung-kwan, Korea Zinc Inc.’s Chairman Choi Yoon-beom, Lockheed Martin Inc.’s Senior Vice President Michael Williamson and U.S. Secretary of Commerce Howard Lutnik (from L to R) pose for a photo after signing a memorandum of understanding in the supply and production of germanium, in this file photo taken Aug. 26 and provided by Korea Zinc. (Yonhap)
The smelter, to be built on the site of the former Nyrstar facility in Tennessee, will mirror the company’s flagship Onsan complex in Korea. By applying upgraded process technology, the plant will produce 13 metals including zinc, lead, copper, gold, silver and critical minerals such as antimony, gallium and germanium—materials vital to electronics, defense and clean-energy supply chains. It will also manufacture sulfuric acid for semiconductor production.
After surveying more than 60 U.S. locations, Korea Zinc said Tennessee offered the most reliable access to water and power. Construction is slated for completion in phases between 2027 and 2029, with annual output targeted at 300,000 tons of zinc, 200,000 tons of lead, 3,500 tons of copper and 5,100 tons of rare metals.
The company also announced a 2.85 trillion won rights offering, issuing new shares to Crucible JV, and an additional 132.3 billion won equity investment to bring its direct stake in the entity to 10 percent.
Products produced at Korea Zinc’s Onsan Smelter (Photo provided by Korea Zinc.)
The project comes as the United States pushes aggressively to localize production of strategic minerals following China’s expanded export controls on rare earths and other key inputs. U.S. officials reportedly urged Korea Zinc to supply “as much as possible, as quickly as possible.”
Analysts say U.S. participation in the venture may also shift the balance in Korea Zinc’s ongoing governance dispute with shareholders Young Poong Group and MBK Partners. If Washington becomes a formal equity holder, the company could effectively be treated as a U.S. strategic asset—complicating any attempt at acquisition and potentially influencing votes from the National Pension Service and minority shareholders.
Korea Zinc said the investment will strengthen supply-chain resilience, secure long-term growth in North America and position the company as a key supplier in the global competition for critical minerals.
M. H. Lee (mhlee@koreabizwire.com)
