Korea Zinc to Build Major U.S. Smelter in Strategic Move to Reduce China Dependence

Korea Zinc, the world’s largest zinc smelting company, has announced plans to build a large-scale metals and minerals production facility in the United States, marking a strategic effort by South Korea and the U.S. to secure critical mineral supply chains independent of China.

The project, valued at approximately $7.43 billion, will be developed as a joint venture involving Korea Zinc, the U.S. government, and U.S. strategic investors. According to a regulatory filing, construction of the plant will begin in 2027 and is scheduled for completion by the end of 2029. The facility will be located in Clarksville, Tennessee.

Under the investment structure, the U.S. government and American strategic investors will contribute $1.94 billion—more than 26 percent of the total capital—in exchange for a significant ownership stake in the joint venture. Their participation underscores Washington’s view of the project as a matter of economic security rather than a purely commercial investment.

Once operational, the plant is expected to produce 300,000 metric tons of zinc, 200,000 tons of lead, 35,000 tons of copper, and 5,100 tons of rare minerals annually. Korea Zinc said the site could later expand into a complex smelter capable of producing additional strategic materials such as antimony, germanium, and gallium—minerals essential for semiconductors, batteries, and defense technologies.

The initiative comes amid growing concern in both Washington and Seoul that China, which dominates the global market for critical minerals and rare earths, could weaponize its control over supplies during periods of geopolitical tension. By establishing processing capacity inside the U.S., the two allies aim to diversify supply chains and reduce strategic vulnerabilities.

“As the global trend toward weaponizing resources intensifies, this project will strengthen South Korea–U.S. economic and security cooperation while contributing to the diversification of global supply chains,” Korea Zinc said in a statement.

Investor reaction to the announcement was volatile. Korea Zinc’s shares surged by as much as 26 percent during intraday trading on optimism surrounding the joint venture, before settling 4.9 percent higher by the close. The broader Kospi index ended the session down 1.8 percent, reflecting wider market weakness.

Analysts view the project as a long-term strategic investment rather than a short-term profit driver, noting that its true significance lies in reinforcing the U.S.–South Korea alliance through shared control over critical industrial resources.