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Korea Zinc will build a $7.4 billion critical minerals smelter in the United States, creating the first US zinc refinery since the 1970s.
The agreement, backed by Washington, involves the construction of a 650,000 m² smelting facility in Tennessee, as the White House seeks to secure supply chains and counter China.
Korea Zinc, a leading global processor of the metal, has “entered into a strategic partnership with the US Department of War and the US Department of Commerce, who will jointly invest in the construction of a large-scale smelter”, the company said in a statement.
The company said the project involves a total planned investment of $7.4 billion, including working capital and financing costs, and added that it is expected to make a significant contribution to global supply chain diversification.
It also warned that geopolitical competition for natural resources is intensifying worldwide and noted that some countries are increasingly controlling critical mineral supply chains.
The news sent shares in Korea Zinc, the world’s largest zinc smelting company, surging as much as 26% in Monday trading in South Korea.
The announcement comes as China dominates the world’s supply of critical minerals, often used in military technology and semiconductors.
The Trump administration will continue to leverage every tool at our disposal to end America’s foreign dependence for critical minerals and restore working-class prosperity,” White House spokesperson Kush Desai said in a statement to Reuters.
Washington’s deputy secretary of defence Steve Feinberg also said the project, reportedly located near a major US military base, will create “750 American jobs”.
It will also “unlock strategic minerals as a force multiplier across aerospace, defence, without chokepoints,” he added in a statement shared by Korea Zinc.
In a statement on X ( formerly Twitter), US Commerce Secretary Howard Lutnick added that the deal was a “Big win for America”.
“The project will produce 540,000 tons per year of essential materials right here in America.
“These minerals power the technologies that matter most for our future, including defence systems, semiconductors, AI, quantum computing, and data centres.
“And it doesn’t stop there: Starting in 2026, the United States will have priority access to Korea Zinc’s expanded global production, putting American security and manufacturing FIRST.
“This is exactly how we win: build here, secure our supply chains, create great jobs, and keep America the world’s industrial and technological leader.
“Congratulations to President Trump on delivering another massive win for the United States!”
