In a move that is sending ripples through the global minerals industry and the world of corporate governance, Korea Zinc has announced a sweeping $7.4 billion plan to build a critical minerals refinery in Clarksville, Tennessee. The project, which aims to break ground in 2027 and begin phased operations by 2029, is poised to become the first large-scale zinc smelter in the United States since the 1970s, according to UPI and the Korea Times.
The significance of this investment is hard to overstate. The facility will process a broad array of metals—zinc, lead, copper, antimony, germanium, gallium, and more—that are essential for everything from semiconductors and electric vehicles to advanced weapons systems and aerospace technology. As highlighted by Korea Zinc in a statement reported by UPI, "Recently, the U.S. is experiencing rapid growth in demand for base metals such as zinc, lead and copper, as well as strategic minerals including antimony, indium, gallium and germanium, driven by advanced and strategic industries such as electric vehicles, batteries, AI and semiconductors."
This surge in demand comes at a time when the United States faces structural vulnerabilities in its supply chain. Many of its domestic smelting facilities are either aging or have shuttered, leaving the country heavily dependent on imports for certain critical minerals. The U.S. Geological Survey, cited by UPI, notes that minerals like indium and gallium are currently 100% import-dependent. The new Tennessee facility is expected to produce 300,000 tons of zinc, 200,000 tons of lead, 35,000 tons of copper, and 5,100 tons of specialty materials annually at full capacity.
The project is deeply intertwined with Washington’s broader ambitions to reduce reliance on China, which currently dominates global production of several strategic minerals. In recent years, China has leveraged its control over these resources in trade disputes, even imposing export bans on key minerals such as antimony and germanium in December 2024—a ban that was only suspended in November 2025, as reported by Investing News Network. According to a White House spokesperson, Kush Desai, quoted by Reuters, "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."
The financing structure for the Tennessee refinery is as complex as it is ambitious. Korea Zinc plans to raise $1.9 billion by issuing new shares to a joint venture controlled by the U.S. government and unnamed U.S.-based strategic investors. The U.S. Department of Defense will hold a 40.1% stake in this venture, with Korea Zinc retaining less than 10%. The rest of the funding—about $5.5 billion—will come from loans backed by the U.S. government and private financial institutions, as well as $210 million in subsidies from the U.S. Commerce Department under the CHIPS and Science Act, according to Investing News Network and UPI.
For Korea Zinc, the move is both a response to global supply chain risks and a strategic expansion into the U.S. market. The company has already demonstrated its intent to secure critical mineral supply chains outside China, having signed a memorandum of understanding with Lockheed Martin in August to supply germanium, as UPI reported. Korea Zinc’s leadership emphasizes that the U.S. facility will help reinforce economic security and enhance cooperation between the U.S. and South Korea.
The deal has drawn strong praise from U.S. officials. Deputy Secretary of Defense Steve Feinberg, quoted by Korea Zinc and UPI, stated, "President Trump has directed his administration to prioritize critical minerals as essential to America's defense and economic security. The new smelter in Tennessee creates 750 American jobs to unlock strategic minerals as a force multiplier across aerospace, defense, electronics and advanced manufacturing without chokepoints." U.S. Senator Bill Hagerty, R-Tenn., added on social media, "Korea Zinc's decision to build a world-class critical minerals refinery in our state is not just an economic victory—it is a geostrategic one that directly supports President Trump's efforts to restore American economic security in partnership with trusted allies, like South Korea."
Yet, behind the scenes, the plan has ignited a fierce battle within Korea Zinc’s own ranks. The company’s largest shareholders, Young Poong Group and MBK Partners, who together hold nearly half of Korea Zinc, are seeking a court injunction to block the planned share issuance. According to the Korea Times, a Young Poong official expressed, "As Korea Zinc’s largest shareholder, directors appointed by Young Poong and MBK Partners express deep regret that they were entirely excluded from any meaningful prior briefing or discussion on a matter of such far-reaching importance to the company’s future. This represents a severe breakdown in corporate governance and a serious procedural violation."
The opposition is not just procedural. The alliance argues that the share issuance could dilute existing shareholders and undermine the company's financial soundness. They further contend that the structure of the deal—granting voting rights at the parent-company level to a foreign-backed entity—deviates from normal commercial practice and could risk the transfer of proprietary expertise overseas. "The move could dilute shareholders and undermine the company’s financial soundness," the alliance warned, as reported by Investing News Network, adding that they intend to "promptly seek a court injunction to halt the issuance of new shares, in order to safeguard Korea Zinc’s long-term viability and shareholder interests."
There are also concerns that replicating Korea Zinc’s integrated smelting process in the United States could weaken South Korea’s domestic smelting industry. The company itself has not yet publicly addressed these governance criticisms, even as its share price has reacted sharply to the news—rising nearly 5% after the announcement, then tumbling over 15% the following day on the Seoul bourse, according to UPI.
This dramatic expansion comes just as the U.S.-led Pax Silica initiative made headlines for excluding India, underlining how access to critical supply chains is increasingly shaped by geopolitical alignment rather than purely commercial interests. As governments and corporations race to secure the building blocks of modern industry, the Korea Zinc project in Tennessee stands as a vivid illustration of the new calculus—where economic, technological, and political considerations are tightly interwoven.
As construction gears up in Tennessee and the legal wrangling in Seoul unfolds, the world will be watching closely. The outcome could reshape not only the future of Korea Zinc, but also the competitive landscape of critical minerals and the dynamics of U.S.-Asia industrial cooperation for years to come.