Korea Zinc Tennessee Smelter Secures Strategic US Support
Korea Zinc Co. plans a $7.4 billion smelter in Tennessee, aiming to supply critical minerals for chips, defense, and aerospace. JPMorgan Chase and the US government are backing the project, creating Crucible JV LLC, a foreign joint venture to oversee operations. The initiative addresses supply chain risks from China’s dominance in essential minerals.
The smelter will produce zinc, lead, copper, gold, silver, antimony, germanium, and gallium. Construction begins next year, with commercial operations targeted for 2029. The site is the current domestic primary zinc smelter, owned by Trafigura Group, which will sell the Clarksville, Tennessee plant to Korea Zinc.
Strategic Implications for US Industrial Security
The US government will gain priority access to Korea Zinc’s global production in 2026, reinforcing domestic supply chains. This move aligns with recent US measures to secure minerals for national security and industrial leadership. JPMorgan facilitated financing under its Security and Resiliency Initiative, targeting $1.5 trillion in strategic investments over the next decade.
Korea Zinc benefits by establishing itself as a national-security supplier amid an ongoing shareholder dispute. Market reactions were strong, with shares rising 4.9% in Seoul after earlier gains of 26%, reflecting investor confidence in the US-backed project.
SuperMetalPrice Commentary:
Korea Zinc’s Tennessee smelter exemplifies the strategic pivot toward domestic critical mineral production. The project enhances US supply chain resilience while positioning Korea Zinc as a key global security supplier. Investors and policymakers should monitor this development for its influence on zinc, copper, and specialty metals markets.
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