Marking the firm’s first US operations. The project, backed by President Trump and federal agencies, targets Clarksville and Gordonsville sites. Total capital expenditure stands at $6.6 billion, including working capital and financing.
Project Investment and Scope
Korea Zinc partners with the US Department of War and Department of Commerce for the smelter, a joint venture where the Pentagon holds a 40% stake. The 650,000 square meter facility revives the first US zinc refinery since the 1970s and reopens a Gordonsville mine that has been idle since 2023. It aims to produce 540,000 tons of essential minerals yearly for defense, semiconductors, AI, and data centers, cutting China’s reliance.
Job Creation and Timeline
The smelter creates 740 jobs: 420 in Montgomery County at a new headquarters and plant, plus 320 in Smith County. High-paying roles support aerospace and military tech near a major US base. Phased operations start in 2029, driven by Tennessee Governor Bill Lee’s Asia recruitment.
Key Statements and Market Impact
Deputy Defense Secretary Steve Feinberg called it a “force multiplier” for defense without supply chokepoints. Commerce Secretary Howard Lutnick hailed a “big win,” producing materials for future tech. Korea Zinc shares jumped 26% post-announcement; it’s the largest private investment in Tennessee history at over $6 billion.
Strategic Role in Supply Chains
The deal aligns with the Trump administration pacts like an $8.5 billion Australia minerals agreement. Korea Zinc, a top nonferrous metal processor, handles zinc, lead, copper, and strategic metals like antimony and indium. Leaders, including Senators Hagerty and Blackburn, praised the national security boost and Tennessee economic gains.
Image Credit – asia.nikkei.com
