Korea Zinc, the world's largest refined zinc smelter, has partnered with a US company to secure rare earth materials amid concerns over global supply chain security. Under the partnership, the two firms will establish a joint venture in the United States to process end-of-life permanent magnets into purified rare earth oxides. The facility aims to begin operations in 2027.
Korea Zinc, the world's biggest refined zinc smelter, announced on January 13 a partnership with US company Alta Resource Technologies to secure rare earth materials amid growing concerns over global supply chain security.
Under the agreement, the two firms will establish a joint venture in the United States to process end-of-life permanent magnets into purified rare earth oxides. The JV plans to build a 100-ton-per-year processing facility at an existing US site operated by PedalPoint, Korea Zinc's wholly owned US-based resource recycling subsidiary, aiming to begin operations in 2027.
"Following our initiative to construct a smelter in the US that will serve as a central pillar of the Korea-US critical minerals supply chain, this cooperation between the two companies marks an important milestone in the rare earths sector," Korea Zinc Chairman Choi Yun-beom said. He added that Korea Zinc will act as a reliable supply chain partner, ensuring stable provision of rare earth elements to advanced industrial companies in both Korea and the US.
The company also plans to invest $7.4 billion to build a smelter in the southeastern US state of Tennessee and start operations in 2029.
"Korea Zinc has the recycling feedstock and global expertise; we have a separation technology purpose-built for the complex mixtures found in end-of-life magnets. Together, we can produce the rare earth oxides that American manufacturers need from materials that are already here," said Alta co-founder and CEO Nathan Ratledge.
This partnership represents efforts to diversify global rare earth supply chains and reduce reliance on China.
