By Kwanwoo Jun
Korea Zinc, the world's largest zinc smelter, plans to build a $7.43 billion U.S. plant to produce key metals and minerals, under a joint venture aimed at strengthening supply-chain ties between Seoul and Washington.
The move comes as the U.S. and South Korea have been seeking a stable and independent supply of rare earths amid concerns that China, which dominates the critical minerals market, could restrict or cut off their supplies.
The South Korean company said in a regulatory filing Monday that construction of the smelter will begin in 2027, with completion scheduled for the end of 2029.
The U.S. government and U.S. strategic investors will invest $1.94 billion, more than 26% of the total investment, for a sizable stake in the JV business, it said.
Korea Zinc aims to produce 300,000 metric tons of zinc, 200,000 tons of lead, 35,000 tons of copper and 5,100 tons of rare minerals annually at the facilities to be built in Clarksville, Tenn.
The U.S. facilities could develop into a complex smelter also producing antimony, germanium, gallium and other strategic minerals, the company said.
"As the global trend toward weaponizing resources intensifies...this project is expected to strengthen South Korea-U.S. economic and security cooperation while making a significant contribution to diversifying global supply chains," Korea Zinc said in a statement.
Earlier in the day, expectations for the JV project sent Korea Zinc's shares up as much as 26% before they ended 4.9% higher. The benchmark Kospi index closed 1.8% lower.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
12-15-25 0641ET
