In a move that’s turning heads across the globe, the United States government is throwing its weight behind Korea Zinc’s ambitious $7.4 billion plan to build a state-of-the-art smelter in Tennessee. This isn’t just another investment story—Washington’s direct involvement in a foreign company’s project, especially in a sector as sensitive as critical minerals, is a rare sight indeed. The partnership, which features the US Department of Defense and undisclosed American investors, will see $2.15 billion poured into a new joint venture, Crucible JV, with the Pentagon holding a 40 percent stake. That translates to the US government gaining control of about 10 percent of Korea Zinc itself.
But the financial muscle doesn’t stop there. The rest of the funding is set to come from $4.7 billion in loans from US government agencies and financial institutions, plus $210 million in subsidies from the Department of Commerce under the CHIPS and Science Act. According to Bloomberg, JPMorgan Chase is also backing the project, underscoring the seriousness of the US commitment. As The Wall Street Journal pointed out, this will be the first major zinc refinery built on American soil since the 1970s—a fact that White House spokesperson Kush Desai called a “major shift under President Trump.”
So, why all the fuss about zinc—and why Korea Zinc? For starters, the US has been grappling with a glaring weakness: while it boasts significant mineral reserves, it’s long lacked the capacity to refine these resources domestically. Instead, raw ore has often been shipped off to China, which dominates the smelting and refining of critical and rare earth metals. The US currently depends on imports for more than 70 percent of its zinc, over 80 percent of its antimony and bismuth, and a full 100 percent of gallium, according to US government data. These aren’t just numbers on a spreadsheet—they’re the backbone of industries like semiconductors, batteries, defense, and energy technology.
Recent moves by Beijing to tighten export controls on strategic minerals have sent shockwaves through Washington and its allies. The risk is clear: if China decides to further restrict exports, American manufacturers could find themselves scrambling for essential materials. As Heo Yoon, a professor of international studies at Sogang University, told Asia Today, “Importing rare earths and critical minerals from China, which major countries once took for granted, has become weaponized as a strategic asset. What we are seeing now is only a temporary pause, and the risk of further export controls remains.”
Enter Korea Zinc, a company with a 50-year pedigree and a unique edge. Unlike single-metal smelters, Korea Zinc’s “integrated smelting” technology can extract a wide range of high-value strategic metals from a single raw material source. The company currently produces 12 of the 60 minerals the US classifies as “critical,” and by 2028, it plans to expand its portfolio to 14, adding gallium and germanium—both vital for semiconductors and recently subjected to new Chinese export licensing.
According to Korea Zinc, it was Washington that approached them to build the facility in the US, recognizing the company as a “strategic partner” in the face of rising global supply chain risks. As an official at Korea Zinc put it, “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. Particularly for the US, 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. In these circumstances, Korea Zinc’s production structure, capable of processing multiple strategic minerals, aligns precisely with Washington’s supply chain strategy.”
Industry analysts are echoing this sentiment. Hong Kwang-pyo of Macquarie Securities told Asia Today that “Korea Zinc has effectively emerged as a strategic asset for the US government.” The planned Tennessee facility is slated to produce eight metals—including zinc, lead, copper, silver, gold, and antimony—all of which the US heavily relies on for imports. Lee Jung-woo of Daol Investment and Securities added that these minerals are “key sources for data centers, artificial intelligence, and defense industries.”
The project’s strategic importance isn’t just about minerals—it’s about geopolitics. As The Financial Times noted, Korea Zinc’s investment is part of a broader US effort to counter China’s dominance in strategic metal supply chains. The facility, described as one of the largest South Korean investments in the US critical minerals sector, is expected to reinforce supply-chain cooperation between Seoul and Washington. Park Kwang-rae, a researcher at Shinhan Investment, called the direct involvement of the US Departments of Commerce and Defense “a symbolic asset of the Korea-US economic security alliance.”
From the South Korean perspective, the move is being hailed as a win for both countries. Industry Minister Kim Jung-kwan said at a press conference that, “Despite the financial burden, we see it as a positive move for Korea Zinc to make this strategic decision. It will help Korea to establish stable supply chains for rare earths.” There’s even talk of leveraging Seoul’s recently finalized $350 billion investment package in key US sectors to help finance the Korea Zinc project.
Environmental sustainability is another factor that’s helped Korea Zinc stand out. The company’s advanced byproduct recovery technologies mean the Tennessee smelter could operate with fewer limitations under strict US environmental regulations. This not only appeals to regulators but also aligns with growing industry demands for greener, more responsible mineral processing.
International media have been quick to spotlight the significance of the project. Reuters reported that the facility, funded primarily by the US government, could help reduce American reliance on China for raw materials essential to electronics and weapons production. Bloomberg described Korea Zinc as a “national security supplier,” while The Wall Street Journal emphasized that the joint venture aims to strengthen supply-chain cooperation between Seoul and Washington.
Korea Zinc itself anticipates that the new US smelter will generate synergies with its existing projects in the region, including Pedal Point, a hub for local resource recycling. The company expects the facility to expand its value chain from raw material procurement to smelting and sales, supporting mid- to long-term revenue growth and solidifying its position in the North American market.
Experts say the US government’s investment in Korea Zinc signals a fundamental shift in how critical minerals are perceived—not just as commodities, but as strategic assets subject to geopolitical maneuvering. As Heo Yoon observed, “The objective is to build substitute supply chains that reduce dependence on China. This is a symbolic move.”
With construction of the Tennessee smelter set to begin soon, all eyes are on this unprecedented partnership. For both Washington and Seoul, the stakes are high—but so are the potential rewards, as the two allies work to reshape the global landscape of critical minerals and secure the building blocks of tomorrow’s technologies.