Korea Zinc Breaks Ground on Massive U.S. Smelter, Betting Big on America’s Critical Minerals Future

Standing on a vast development site in Clarksville, Tennessee, South Korea’s Korea Zinc is making one of the boldest industrial bets yet on the future of America’s critical minerals supply chain.

The company has entered a strategic partnership with the U.S. government to jointly invest in a large-scale smelter project valued at approximately 11 trillion won. Of that, around $6.6 billion will be invested directly into the Tennessee facility, while total funding—including operating capital and financing costs—will reach roughly $7.4 billion.

Construction is set to begin after site preparation starts in 2026, with Korea Zinc targeting completion by 2029. Once online, the smelter will ramp up operations in phases before entering full commercial production. At peak capacity, the plant will process about 1.1 million tons of raw materials annually and turn out roughly 540,000 tons of finished products.

What will come out of this facility goes well beyond traditional metals. The production lineup includes 13 different materials—ranging from zinc, lead, and copper to precious metals like gold and silver, as well as strategic minerals such as antimony, indium, bismuth, palladium, gallium, and germanium. These materials are essential for industries spanning aerospace, defense, semiconductors, electric vehicles, and next-generation technologies.

Korea Zinc plans to transplant the core of its success in South Korea directly to the U.S. The company will apply the same world-leading non-ferrous smelting technology and operational know-how used at its flagship Onsan Smelter, widely regarded as the most advanced facility of its kind globally. Key engineers and operational staff from Onsan will be dispatched early to the U.S. site to stabilize operations and minimize technological risk from day one.

Once production begins, the U.S. smelter is expected to generate more than 5.6 trillion won in annual revenue starting in 2030.

For Washington, the project represents a concrete step toward reshaping global critical mineral supply chains that have long been heavily dependent on China. For Korea Zinc, the Tennessee facility serves as a strategic North American hub—one that strengthens both business stability and long-term growth.

Senior figures in the Trump administration were quick to welcome the move.

U.S. Commerce Secretary Howard Lutnick described the project as “a landmark deal that fundamentally changes America’s critical minerals landscape,” adding that the United States will be able to domestically produce 13 critical and strategic minerals essential to aerospace and defense, semiconductors, artificial intelligence, quantum computing, automobiles, industrial manufacturing, and national security.

Steve Feinberg, Deputy Secretary of Defense, echoed that view. “President Trump has made it clear that critical minerals are strategic assets vital to both defense and economic security,” he said. “This new smelter will create 750 American jobs and act as a force multiplier—ensuring a steady, bottleneck-free supply of strategic minerals across aerospace, defense, electronics, and advanced manufacturing.”

Korea Zinc Chairman Choi Yoon-bum emphasized that the project marks a turning point for the company. “With the construction of an integrated smelter in the United States, Korea Zinc will solidify its role as a strategic partner supplying critical minerals essential to aerospace and defense,” he said. “This will significantly elevate both corporate and shareholder value.” He also stressed that the U.S. investment will not come at the expense of jobs or investment in South Korea.

As heavy equipment prepares to move onto the Clarksville site, Korea Zinc’s U.S. smelter is fast emerging as a symbol of deepening industrial ties between Seoul and Washington—and a major pillar in America’s push for supply chain security.