U.S. Commerce Secretary Howard Lutnick welcomed Korea Zinc Co.'s plan to jointly invest in a critical metals refinery in Tennessee as a 'big win for America.' The initiative involves a strategic partnership with the U.S. Departments of Defense and Commerce to build the facility. The investment is estimated at around 10 trillion won ($6.8 billion).
Korea Zinc Co. finalized its plan at a board meeting on December 15, 2025, to jointly invest with the U.S. government in building a critical metals refinery in Clarksville, Tennessee, in the southeastern United States. Named the 'U.S. Smelter' project, the 650,000-square-meter facility is expected to produce 540,000 tons per year of essential minerals, including gallium, germanium, indium, antimony, copper, silver, gold, and zinc.
U.S. Commerce Secretary Howard Lutnick praised the initiative in a social media post on X, stating, "Today, we announced a major investment with Korea Zinc to build a state-of-the-art critical minerals smelter and processing facility in Tennessee that will produce 540,000 tons per year of essential materials right here in America." He added, "These minerals power the technologies that matter most for our future: defense systems, semiconductors, artificial intelligence, quantum computing, autos, data centers, and advanced manufacturing."
Lutnick highlighted that the refinery will support fighter jets, satellites, chip factories, and the electric grid, and noted, "Starting in 2026, the United States will have priority access to Korea Zinc's expanded global production, putting American security and manufacturing FIRST." The joint investment is around 10 trillion won ($6.8 billion), with construction set to begin next year and commercial operations phasing in from 2029.
The plan responds to U.S. efforts against Chinese export restrictions on rare earths and critical metals. Korea Zinc will take over and rebuild an existing Nyrstar refinery site, selected for its water, electricity supply, and logistics. This follows Chairman Choi Yoon-beom's August announcement of a strategic metals partnership during his U.S. visit, after President Lee Jae-myung's summit with President Donald Trump, and an MOU with Lockheed Martin for a germanium facility in South Korea. Lutnick congratulated President Trump on securing this win for U.S. industrial and technological leadership.
