For decades, the global supply of critical minerals—those essential for defense, high-tech manufacturing, and clean energy—has been dominated by a single player: China. But in a flurry of announcements on December 18, 2025, two major moves signaled that the United States and its allies are pushing back, seeking to secure their own future in the minerals race. The news: Almonty Industries Inc. shipped its first ore from South Korea’s Sangdong tungsten mine, and the U.S. government threw its weight behind Korea Zinc’s $7.4 billion smelter in Tennessee, the first such facility on American soil since the 1970s.
These developments, reported by NAI500 and The Korea Herald, mark a pivotal shift in the global minerals landscape—one that could reshape supply chains, fortify national security, and recalibrate the balance of power in high-stakes industries from semiconductors to defense.
Let’s start in the mountains of South Korea, where Almonty Industries has spent years reviving the Sangdong tungsten mine. Once among the world’s largest and highest-grade tungsten deposits, Sangdong boasts proven reserves of approximately 7.9 million tonnes. On December 18, Almonty announced its first ore shipment, a milestone that marks the final step before full commercial production. Investors responded immediately: the company’s share price shot up 9%, boosting its market capitalization to about $2.79 billion.
Why all the excitement over a metal that rarely makes headlines? Tungsten is classified as a critical strategic mineral, prized for its use in everything from armor-piercing military penetrators to high-performance electronics. The catch: China currently supplies over 80% of the world’s tungsten, and the U.S. hasn’t produced any domestically since 2015. With demand surging—especially for defense applications—tungsten prices have hit a 12-year high, sharpening the West’s focus on supply chain security.
Almonty, now the largest tungsten producer outside China, is positioning Sangdong’s output as a lifeline for the U.S. market. The company’s CEO has stated that, at full capacity, the mine could supply nearly 40% of the world’s non-Chinese tungsten. To cement its role in Western defense, Almonty is redomiciling to the U.S. and has joined the Critical Minerals Forum, a policy group backed by the U.S. Defense Advanced Research Projects Agency (DARPA). The Sangdong processing plant is set for commissioning in July 2026, promising to link Korean mining and smelting with high-end American manufacturing—a new, non-Chinese anchor for the tungsten supply chain.
"This operation aims to provide a reliable, non-Chinese supply for the U.S. and its allies," explained Almonty’s CEO, underscoring the broader strategic implications. The move is not just about business; it’s about national security and technological leadership in an era where minerals can be weaponized as much as missiles.
Meanwhile, across the Pacific, another deal was quietly rewriting the rules of mineral supply. The U.S. government, in a rare direct investment in a foreign company, announced its backing of Korea Zinc’s ambitious new smelter in Tennessee. The $7.4 billion project, to be operated by a joint venture called Crucible JV, will see the Pentagon hold a 40% stake—translating to about 10% control of Korea Zinc itself. The rest of the financing comes from $4.7 billion in loans from U.S. government agencies and financial institutions, plus $210 million in subsidies from the Department of Commerce under the CHIPS and Science Act.
Commerce Secretary Howard Lutnick called it a “transformational deal,” and for good reason. This will be the first U.S.-based zinc refinery in more than fifty years. But why Korea Zinc? Industry observers point to the company’s unique, integrated smelting technology, which allows it to extract a wide range of strategic minerals—not just zinc, but also antimony, bismuth, indium, tellurium, and more—from a single raw material source. Currently, Korea Zinc produces 12 of the 60 minerals the U.S. government classifies as critical. By 2028, it plans to expand to 14, adding semiconductor-critical gallium and germanium—minerals that China recently subjected to tighter export controls.
The U.S. has long depended on imports for these materials: over 70% for zinc, more than 80% for antimony and bismuth, and a full 100% for gallium. China dominates the smelting and refining stages for these metals, making it difficult for the U.S. to fully utilize even its own mined resources. Recent Chinese export controls have only heightened the sense of vulnerability in Washington.
“At a time when resource security has become an urgent priority, multimetal smelters are better positioned than single-metal facilities to tackle supply chain vulnerabilities,” said a Korea Zinc official, according to The Korea Herald. “Particularly for the U.S., which has been heavily dependent on China for rare metals, the need to secure stable supply chains across a broad range of minerals has increased.”
Korea Zinc’s environmentally sustainable smelting and advanced byproduct recovery technologies also helped seal the deal, allowing the company to operate under strict U.S. environmental regulations. The Tennessee plant is expected to produce eight metals—including zinc, lead, copper, silver, gold, and antimony—all vital for industries like data centers, artificial intelligence, and defense.
Experts say this is more than just an industrial partnership; it’s a strategic calculation. “Importing rare earths and critical minerals from China, which major countries once took for granted, has become weaponized as a strategic asset,” explained Heo Yoon, professor of international studies at Sogang University. “What we are seeing now is only a temporary pause, and the risk of further export controls remains.”
Heo emphasized that Chinese policy documents explicitly label these minerals as “strategic assets,” with export controls adjusted in response to U.S. and other nations’ pressure. The U.S., in turn, is focusing on allied countries and companies with advanced refining capabilities. “The objective is to build substitute supply chains that reduce dependence on China,” said Heo. “This is a symbolic move.”
Analysts agree that Korea Zinc’s U.S. facility has elevated the company’s status in Washington. “Korea Zinc has effectively emerged as a strategic asset for the U.S. government,” said Hong Kwang-pyo of Macquarie Securities. Lee Jung-woo, an analyst at Daol Investment and Securities, added that these minerals are key sources for next-generation technologies, aligning directly with Washington’s push to diversify the value chain. Park Kwang-rae of Shinhan Investment called the project “a symbolic asset of the Korea-U.S. economic security alliance.”
With Almonty’s Sangdong mine and Korea Zinc’s Tennessee smelter, the U.S. and its allies are clearly signaling a new era in critical minerals. These moves don’t just secure supply—they send a message: the days of taking China’s dominance for granted may be numbered, and the race for resource security is on.