## Korea Zinc Secures $7.4B US Critical Minerals Venture to Reduce Beijing's Market Grip

The Trump administration is backing a transformative $7.4 billion investment from Korea Zinc, the globe's leading zinc producer, to establish a comprehensive minerals processing facility within American borders. This strategic initiative represents a direct response to escalating supply-chain vulnerabilities affecting defense, automotive, semiconductor, and consumer electronics sectors—all industries where China's dominance in critical materials has become increasingly problematic for Western economic security.

### Reshaping the Global Minerals Supply Chain

Korea Zinc has committed to constructing a facility capable of producing antimony, germanium, gallium, zinc, copper, lead, gold, and silver—materials that form the backbone of modern semiconductor manufacturing and advanced electronics. The company received a direct request from Washington to anchor these production capabilities inside the United States, effectively reversing decades of Asian dependency on Chinese mineral exports.

The production timeline spans from 2027 through 2029 for full commercial deployment. Korea Zinc's stock surged 27% following the announcement, demonstrating market confidence in this geopolitical repositioning. The company's leadership views this expansion as critical to establishing long-term competitive advantages in the North American minerals market while simultaneously strengthening shareholder value through new growth avenues.

### Joint Venture Structure and Financial Architecture

The Korea Zinc board approved a foreign joint venture incorporating direct US government participation as a structural partner. The financing framework totals approximately $2 billion in joint venture capital, with additional resources flowing through US government loans, federal grants, and Korea Zinc's own capital contribution. This hybrid financing model underscores Washington's commitment to decoupling American infrastructure from Chinese supply constraints.

Korea Zinc identified a former Nyrstar smelting facility in Tennessee as the production site, plans to completely modernize the infrastructure for multi-metal processing alongside sulphuric acid generation for chipmakers. This geographic choice places production within the continental US, reducing logistics risks and strengthening supply chain resilience.

### Production Targets and Market Implications

Once operational at full capacity, the facility will generate 300,000 tonnes of zinc annually, 35,000 tonnes of copper, 200,000 tonnes of lead, and 5,100 tonnes of rare earths yearly. This output level represents one of the most significant efforts to redistribute critical minerals supply away from Chinese control. Given Korea Zinc's established expertise in metal refining and pricing dynamics—including gold price tracking in South Korea where the company maintains strong market positioning—the operation is positioned to compete effectively in volatile commodity markets while serving US strategic interests.

### Geopolitical Context and Beijing's Response

China maintains strict export restrictions on antimony, indium, tellurium, cadmium, and germanium—precisely the materials Korea Zinc already produces at scale. The initiative follows Seoul's broader $350 billion investment commitment tied to a tariff arrangement concluded in October. Beijing has signaled limited flexibility, recently announcing general licenses for rare earth exports as part of broader trade negotiations, yet maintaining tight controls over other essential minerals.

This Korea Zinc venture anchors a cornerstone of US-led efforts to build alternative critical minerals infrastructure independent from Chinese dominance, fundamentally reshaping how advanced industries source their raw material foundation.