Korea Zinc, a global leader in non-ferrous metal production, is poised to make a historic investment in the United States, reflecting a dramatic shift in the international landscape for strategic minerals. On December 15, 2025, the company’s board of directors is set to finalize a plan to build a major smelter in the southeastern U.S.—a move that underscores the intensifying race for control over critical resources amid rising geopolitical tensions.
The proposed project, as reported by The Asia Business Daily and Yonhap News Agency, comes with a staggering price tag of around 10 trillion won (roughly US$6.8 billion). What’s even more remarkable is the anticipated direct participation of the U.S. government and local defense industry giants, who are expected to inject approximately 2 trillion won into the joint venture. This is not just a business deal; it’s a strategic maneuver, prompted by the U.S. government’s urgent efforts to secure its supply chains in response to China’s tightening grip on exports of rare earths and other critical minerals.
The smelter—set to be constructed in a major city in the southeastern United States, after a review of more than 60 possible locations—will serve as a vital hub for the production and supply of key strategic minerals such as antimony and germanium. These metals are essential for a host of high-tech and defense applications, from semiconductors to advanced weaponry. According to Korea Zinc, the new facility will adopt a scaled-down version of the company’s renowned Onsan Smelter in Ulsan, South Korea. The Onsan plant, sprawling across 1.42 million square meters, currently produces 1.2 million tons of non-ferrous metals each year through an integrated process that combines hydrometallurgical and pyrometallurgical techniques.
“We are considering implementing about two-thirds of the integrated smelting capacity of the Korean facility in the United States,” Korea Zinc management told The Asia Business Daily. The U.S. side, they explained, is seeking the ability to simultaneously produce multiple strategic minerals, rather than focusing on just one or two metals. This integrated approach is seen as crucial for building a resilient and flexible supply chain—something that’s become a top priority for Washington in light of recent global disruptions.
The timing of this investment is hardly coincidental. Since China announced new restrictions on the export of rare earths and other strategic materials, the U.S. has scrambled to reduce its dependence on foreign suppliers. The Biden administration (and U.S. defense agencies) have made no secret of their desire to bring more of the supply chain home, especially for minerals considered vital to national security. The Department of Defense and Department of Commerce, alongside major defense contractors, are reportedly ready to back the Korea Zinc venture with equity investments totaling around 2 trillion won—an extraordinary show of public-private partnership.
This initiative is also the tangible result of high-level diplomacy. During the Korea-U.S. summit in August 2025, Korea Zinc Chairman Yoonbeom Choi announced a new “strategic minerals cooperation initiative” with the United States. At that summit, Korea Zinc signed a memorandum of understanding with Lockheed Martin, the largest U.S. defense contractor, to supply and purchase germanium and to cooperate on critical mineral supply chains. The agreement included plans for a new germanium production facility in South Korea, with an investment of about 140 billion won, as noted by Yonhap News Agency.
Photos from the August event show Korea Zinc’s Chairman Choi, Lockheed Martin’s Senior Vice President Michael Williamson, U.S. Secretary of Commerce Howard Lutnik, and South Korea’s Industry Minister Kim Jung-kwan standing together—a visual testament to the multinational, multi-sectoral nature of this partnership. The symbolism is clear: this is more than just a business expansion; it’s a statement about the future of industrial cooperation between the U.S. and its allies.
But why the southeastern United States? According to both The Asia Business Daily and Yonhap, the region was chosen after an exhaustive review of over 60 candidate sites, largely because of its reliable water and power infrastructure—crucial factors for any large-scale smelting operation. Local governments in the area have also shown strong interest, likely enticed by the prospect of hundreds of high-skilled jobs and the economic boost that comes with hosting a state-of-the-art facility.
While the business case is compelling, the project also carries significant political and governance implications. Industry analysts point out that if the U.S. government becomes a direct shareholder in the Korea Zinc venture, the company will be seen not just as a private enterprise but as a strategic asset embedded within the U.S. economic and security supply chains. This could complicate ongoing management rights disputes involving Korea Zinc, Young Poong Group, and MBK Partners. Any future mergers, acquisitions, or changes in corporate governance could draw scrutiny from not only investors but also government regulators and national security officials. As The Asia Business Daily notes, “This could become a complicating factor for future mergers and acquisitions (M&A) or changes in corporate governance involving Korea Zinc, and may also influence the decisions of the National Pension Service and minority shareholders during any management control contest.”
For Korea Zinc, the move represents both an opportunity and a challenge. The company is already recognized as a pioneer in integrated smelting technology, and this U.S. expansion could cement its status as a linchpin in the global minerals supply chain. At the same time, the increased involvement of governments and defense contractors means the company will need to navigate a more complex regulatory and political environment—not always an easy task, even for seasoned executives.
The broader context, of course, is the ongoing contest for global technological leadership. As the U.S. and China vie for supremacy in advanced manufacturing, control over the raw materials that underpin these industries has become a strategic imperative. The Korea Zinc smelter is just one piece of a much larger puzzle, but it’s a significant one—especially as Washington seeks to build “friend-shoring” alliances with trusted partners.
The final decision on the investment is expected to be made at Korea Zinc’s board meeting on December 15, 2025. If approved, construction could begin as early as next year, with the facility potentially coming online within a few years. The stakes are high, and the world will be watching to see whether this ambitious venture can deliver on its promise to reshape the global landscape for critical minerals.
For now, Korea Zinc’s audacious plan stands as a testament to how business, diplomacy, and national security are becoming ever more intertwined in the 21st-century race for resources.