Korea Zinc's Tennessee Smelter Project Wins U.S. Support

Korea Zinc Chairman Choi Yoon-beom (second from left) touring the site of the planned integrated smelter in the United States. (Photo courtesy of Korea Zinc) Expectations are growing locally regarding the large-scale integrated non-ferrous metal smelter construction project in Tennessee, United States, spearheaded by Korea Zinc Chairman Choi Yun-bome. Following U.S. President Donald Trump’s direct mention of Korea Zinc’s investment and job creation effects, local politicians also expressed expectations for strengthening the critical mineral supply chain and revitalizing the local economy. According to local media in Tennessee, United States, on Oct. 14 (local time), key figures in Clarksville and Tennessee, where the Korea Zinc smelter will be located, welcomed Korea Zinc’s investment in the U.S. smelter. They paid attention to the economic effects of the large-scale investment, the retention of existing jobs, and the positive impact it will have on supply chains across the United States. Regarding Korea Zinc’s investment announcement, Clarksville Mayor Joe Pitts stated, “I am very pleased with this announcement,” and added, “Now, when critical minerals are needed nationally, is a very important time in our country’s history.” Tennessee State Representative Ronnie Glynn (Democrat, Clarksville) also expressed high expectations. Representative Glynn said, “Korea Zinc plans to acquire the existing zinc smelter and double its scale,” and added, “Expectations for this are very high.” This reaction from local politicians is interpreted as reflecting the expectation that Korea Zinc’s large-scale investment can contribute not only to revitalizing the local economy but also to strengthening the critical mineral supply chain in the United States. In cooperation with the U.S. government and others, Korea Zinc is promoting ‘Project Crucible’ to build a large-scale integrated non-ferrous metal smelting and processing facility in the Clarksville area of Tennessee. The total investment scale is about $7.4 billion, which reportedly includes a subsidy of $210 million under the U.S. Department of Commerce’s CHIPS Act. The facility plans to produce key strategic minerals required for semiconductors, the defense industry, and advanced manufacturing, such as gallium, germanium, indium, and antimony. In particular, it is expected to contribute to increasing the stability of the high-tech industry supply chain by expanding the production and processing capabilities in the United States for critical minerals that have a high dependence on specific countries such as China. Previously, President Trump also directly mentioned Korea Zinc’s investment in the U.S. smelter and emphasized its economic effects at a Republican midterm election support rally held in Clarksville, Tennessee, on Oct. 10 (local time). President Trump said, “Korea Zinc is investing more than $6 billion and creating 740 jobs right here in Montgomery County and Smith County, Tennessee.” He continued, “A new mineral smelter, the first to be built in the United States since 1979, will be established,” and emphasized, “High-quality jobs with high wage levels will be created.” The fact that the U.S. government is stepping up to strengthen the supply chain of critical minerals and materials to secure the competitiveness of the semiconductor industry is also cited as a background for the increasing interest in the Korea Zinc project. Bill Fronhofer, Senior Director for Semiconductor Investment and Innovation at the U.S. Department of Commerce, emphasized the importance of building semiconductor supply chain resilience at the ‘SEMICON West 2026’ Chief Executive Officer (CEO) Summit held on Oct. 13 (local time). Director Fronhofer explained to the effect that even if semiconductor manufacturing facilities and back-end processing capabilities are secured, semiconductor production is difficult unless supported by chemicals, specialty gases, materials, minerals, and permanent magnets. This means that beyond expanding semiconductor manufacturing facilities, it is important to stably secure the raw materials and materials essential for production. The U.S. Department of Commerce is reviewing the supply chain of critical minerals necessary for semiconductor manufacturing, and it is reported that the department is also considering measures to strengthen procurement capabilities within the United States and secure supply chains through allied countries in cooperation with relevant ministries such as the Department of Defense and the Department of Energy. In this process, the integrated non-ferrous metal smelting and processing facility construction project promoted by Korea Zinc in Tennessee is also attracting attention as an example to strengthen the resilience of the US critical mineral supply chain.