Korea Zinc announced a new partnership with the U.S. Department of Defense and the Department of Commerce to build a large smelter in Tennessee. The project, called the ‘U.S. Smelter’, is an 11 trillion Korean won investment aimed at improving the U.S. smelting industry, which has faced challenges in recent years. Korea Zinc will guide the project, with the U.S. Department of Defense as well as local defense companies becoming shareholders.
The project is observed as a strategic initiative to lower dependency on China for major minerals. These minerals are utilized in industries such as aerospace, defense, semiconductors, AI, and automobiles, and are crucial for national security. U.S. Secretary of Commerce, Howard Lutnick, called the project "transformational," saying it would help the U.S. produce 13 key minerals necessary for the future economy.
Construction of the smelter will begin in 2026, with full production starting in 2029. The facility will process 1.1 million tons of raw materials every year and produce 540,000 tons of finished products. These products will include zinc, lead, copper, and gold, as well as critical minerals like antimony, indium, bismuth, and palladium. The smelter will also manufacture sulfuric acid, important for making semiconductors.
The new smelter will be built in Clarksville, Tennessee, on the site of the old Nyrstar smelter. The location is perfect for smelting, with good geology as well as low electricity costs. Korea Zinc has also agreed to acquire the Nyrstar smelter to help with the new project.