Foreign media spotlight Korea Zinc's U.S. investment

19 Dec 2025, 01:48 · UPI

Dec. 17 (Asia Today) -- Korea Zinc's decision to build a large-scale smelter in the United States is drawing broad attention from major foreign media outlets, which describe the project as a significant step toward strengthening U.S. national security and reducing dependence on China for critical minerals.

The Tennessee smelter project represents an investment of about 11 trillion won ($8.3 billion), with roughly 2 trillion won ($1.5 billion) to be contributed by the U.S. government and participating companies. International media have highlighted the project's role in reinforcing critical mineral supply chains between South Korea and the United States.

According to industry sources, Bloomberg reported on Dec. 15 that JPMorgan Chase and the U.S. government are backing Korea Zinc's plan to build a $7.4 billion smelter in Tennessee to supply minerals essential to the semiconductor, defense and aerospace industries. The report noted that China currently dominates the critical minerals sector, leaving U.S. industries heavily dependent on overseas imports.

Bloomberg added that the investment positions Seoul-based Korea Zinc as a "national security supplier."

The Financial Times also reported that day that the United States has supported Korea Zinc's $7.4 billion investment in a critical mineral processing plant as part of efforts to counter China's dominance in strategic metal supply chains. The newspaper noted that Korea Zinc Chairman Choi Yoon-beom joined a South Korean economic delegation that visited Washington in August.

The Financial Times described the project as one of the largest South Korean investments in the U.S. critical minerals sector, adding that Korea Zinc's strategic importance is heightened as critical minerals play a central role in U.S. national security and industrial policy.

The outlet further reported that the United States and its allies remain highly dependent on China for critical minerals and are accelerating efforts to build non-Chinese supply chains. Korea Zinc produces several strategic materials, including antimony, indium, tellurium, cadmium and germanium, many of which are subject to strict Chinese export controls.

Reuters reported on Dec. 16 that the facility is expected to be funded primarily by the U.S. government and could help reduce U.S. reliance on China for raw materials essential to electronics and weapons production.

The Wall Street Journal reported on Dec. 15 that Korea Zinc, the world's largest zinc smelter, plans to build a $7.43 billion U.S. smelter through a joint venture aimed at strengthening supply-chain cooperation between Seoul and Washington. The newspaper said the move reflects growing concerns that China, which dominates the critical minerals market, could restrict or halt supplies.

White House spokesperson Kush Desai said in remarks provided to CNBC and other outlets that there has been no large-scale zinc smelter construction in the United States since the 1970s, adding that Korea Zinc's investment in Tennessee marks a major shift under President Trump.

Korea Zinc said it expects the U.S. smelter to generate synergies with its existing regional projects, including Pedal Point, a key hub for local resource recycling. The company anticipates that the facility will expand its value chain from raw material procurement to smelting and sales, strengthening its position in the North American market and supporting mid- to long-term revenue growth.

- Reported by Asia Today; translated by UPI

Foreign media spotlight Korea Zinc's U.S. investment

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