Korea Zinc proposes recycled-content smelter in US

Global metals producer Korea Zinc has announced its intention to work in cooperation with the United States Department of Commerce and the U.S. Department of War (formerly Department of Defense) to build a of $7.4 billion smelting facility in Tennessee.

Seoul-based Korea Zinc has existing assets in the U.S., including an existing smelter in Tennessee, a majority stake in New York-based electronics recycling firm PedalPoint (formerly Igneo) Technologies and ownership of nonferrous recycling and trading company Kataman Metals, St. Louis.

The announcement comes while Korea Zinc is in the midst of a corporate boardroom and shareholder power struggle involving lawsuits filed by shareholders who wish to undertake leadership changes at the company.

The current leaders of Korea Zinc in the meantime have entered into what they call a strategic partnership with the two U.S. cabinet level departments to “invest in the construction of a large-scale smelter in Clarksville, Tennessee.”

States Korea Zinc, “As geopolitical competition over natural resources intensifies globally and certain countries increasingly exert influence over critical mineral supply chains, the project is expected to strengthen U.S.-Republic of Korea (South Korea) economic security cooperation while contributing significantly to global supply chain diversification.”

The company says it foresees annual production capacity in Clarksville of 540,000 combined tons annually of 13 different nonferrous metals, and says the proposed facility will be modeled after its existing Onsan smelter in South Korea.

On its website, Korea Zinc describes the Onsan complex as the world’s largest single-site smelter. “It has secured advanced technology to process complex raw materials, such as low-grade concentrates and scrap with high impurity levels, and has established integrated zinc-lead-copper processes to maximize valuable metal recovery rates, demonstrating global competitiveness,” states the company.

The scrap referred to by Korea Zinc includes printed circuit boards and other forms of electronic scrap that contain precious metals, nonferrous metals and rare earth elements (REEs).

The 13 metals planned for production at the Tennessee facility include zinc, lead, copper, gold, silver, antimony, indium, bismuth, tellurium, cadmium, palladium, gallium and germanium.

“Construction of the U.S. smelter will begin with site preparation in 2026, followed by phased commercial operations [starting in] 2029,” states Korea Zinc, adding that, “Full-scale construction will start in 2027.”

Korea Zinc estimates the sprawling complex will occupy approximately 160 acres of land (650,000 square meters) and will be built on the site of its current Nyrstar zinc concentrates smelter in Clarksville.

While the company’s announcement refers to recycled content as feedstock for the smelter, a separate press release from the Tennessee Department of Economic and Community Development (TNECD) refers to a closed zinc mine in that state that could be reopened in a related move.

“In Gordonsville, Tennessee, the company plans to reopen a former mine, bringing back lost jobs and industry to the community,” says the agency.

“Korea Zinc’s critical minerals project in Tennessee is a transformational deal for America,” says U.S. Secretary of Commerce Howard Lutnick. “Our country will now produce, in volume, 13 critical and strategic minerals that are vital to aerospace and defense, semiconductors, artificial intelligence, quantum computing, autos, industrials and national security.”

“President Trump has directed his administration to prioritize critical minerals as essential to America’s defense and economic security,” says Deputy Secretary of War Steve Feinberg. “The Department of War’s conditional investment of $1.4 billion to build the first U.S.-based zinc smelter and critical minerals processing facility since the 1970s reverses 50 years of industrial decline.”

Remarks Korea Zinc board chair Yun B Choi, “With its project in the U.S., Korea Zinc will solidify its position as a strategic partner supplying essential minerals for aerospace and defense. This will become a model case of strengthened U.S.-ROK economic security cooperation. Given the current geopolitical climate and strong U.S. support, now is the optimal moment for expansion into the American market.”