Korea Zinc and Washington to Jointly Invest US$6.8 Billion in a Critical Metals Refinery in Tennessee

Summary: Korea Zinc Co. and the U.S. government are seeking to jointly invest around 10 trillion won (US$6.8 billion) in a critical metals refinery in the southeastern United States, the South Korean nonferrous metals producer said after its board finalized the joint-venture plan. The plant in Clarksville, Tennessee, named "U.S. Smelter," is to start construction next year and begin phased commercial operations from 2029.

The project

Korea Zinc said it signed a strategic partnership with the U.S. Departments of War and Commerce and plans a joint investment to construct the refinery in Clarksville. Washington pushed for the plant's construction and is expected to invest around 2 trillion won in the joint venture together with U.S. defense firms. The board approved the plan at its meeting on December 15. "We decided to build a comprehensive nonferrous metal refinery in the United States to strengthen our drive for future growth," the company said in a public notice.

Critical metals on the agenda

The refinery is intended as a U.S. foothold for the supply and production of critical metals, including antimony and germanium. The plan comes as the U.S. government steps up efforts to respond to Chinese export curbs on rare earths and critical metals.

How the site was chosen

After reviewing more than 60 candidate sites, the two sides selected Tennessee, citing a stable supply of the water and electricity smelting requires and the state's logistical accessibility. Korea Zinc plans to take over the site of an existing refinery owned by Nyrstar and rebuild its infrastructure using advanced processing technology; an agreement with Nyrstar on the takeover had already been reached. Construction is set to begin next year with site preparation, with commercial operations starting in phases from 2029.

The road to the joint venture

August 2025: Chairman Choi Yoon-beom announced plans for a strategic metals partnership with the United States during his visit to the country, following President Lee Jae Myung's first summit with U.S. President Donald Trump.
August 26, 2025: Korea Zinc signed a memorandum of understanding with U.S. defense giant Lockheed Martin on the supply and production of germanium; the signing was attended by Industry Minister Kim Jung-kwan and U.S. Commerce Secretary Howard Lutnick.
The same month: an MOU with Lockheed Martin to invest around 140 billion won in a germanium-producing facility in South Korea.
December 15, 2025: the board finalized the U.S. joint venture and the "U.S. Smelter" project.