Posted on 01/05/2026 1:39:46 PM PST by delta7
Financed by JPMorgan, Jointly Owned by US DoD
Under the plan, the U.S. Department of Defense will hold a 40% stake in the JPM Financed smelter joint-venture.
GFN – WASHINGTON: Korea Zinc plans a $7.4 billion investment to construct a large-scale non-ferrous metals smelter in Clarksville, Tennessee, a project U.S. officials say will materially expand domestic critical minerals processing capacity and strengthen supply chain security.1
The project, known as the “U.S. Smelter,” is expected to require approximately $6.6 billion in capital expenditures, with total investment reaching $7.4 billion including financing costs. It is being developed in coordination with the U.S. Department of War and the U.S. Department of Commerce, according to project materials and government statements.
Deputy Secretary of War Steve Feinberg said the investment reflects a strategic shift in U.S. industrial and defense priorities.
“President Trump has directed his Administration to prioritize critical minerals as essential to America’s defense and economic security,” Feinberg said.
“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 decades of industrial decline. The new smelter in Tennessee creates 750 American jobs and expands access to strategic minerals across aerospace, defense, electronics, and advanced manufacturing.” Auto Draft Timeline of U.S. metals refining capacity since the 1970s The Tennessee facility will be the first zinc refinery built in the United States in more than 50 years and will operate as an integrated smelter capable of producing 13 non-ferrous metals. Most of these materials are designated as critical minerals by the U.S. government due to their role in defense production, advanced electronics, and energy systems.
Under the current framework, the Department of War will arrange approximately $2.15 billion in financing alongside private investors. The Department of Commerce will provide $210 million in funding under the CHIPS Act to support domestically sourced equipment, with JPMorgan assisting in structuring the financing.
IEA outlook for global critical minerals demand under STEPS, APS, and NZE scenarios U.S. officials have described the project as an example of allied cooperation to secure supply chains amid rising competition for strategic resources. Josh Phair, founder and CEO of Scottsdale Mint, said in a recent Yahoo Finance interview, “We’re in a metals war’. and securing supply is crucial now
Secretary of Commerce Howard Lutnick said the investment would expand U.S. production of strategically important minerals.
“Korea Zinc’s critical minerals project in Tennessee is a transformational deal for America,” Lutnick said.
“The United States will produce, in volume, 13 critical and strategic minerals vital to aerospace and defense, semiconductors, AI, quantum computing, autos, industrials, and national security.” Korea Zinc plans to deploy technical personnel and operational expertise from its Onsan Smelter in Ulsan, South Korea, during early project phases. Onsan is the world’s largest single-site non-ferrous smelting complex and is known for processing low-grade and complex materials, including scrap with high impurity content.
Auto Draft North America’s role in global critical minerals mining and refining Company officials said transferring this integrated zinc-lead-copper processing capability is intended to reduce commissioning risk and position the Clarksville facility among the most advanced smelters globally. Producing within the United States is also expected to reduce exposure to trade restrictions and logistics disruptions while enabling local sourcing of scrap and raw materials.
Despite government backing, the project has prompted shareholder resistance. An alliance led by MBK Partners and Young Poong has opposed the U.S.-backed joint venture, citing concerns over potential share dilution and governance control. The group has indicated it may seek legal action to block new share issuance.
Korea Zinc shares rose more than 26% following the project announcement before declining by over 13% as shareholder opposition became public.
Once fully operational, the U.S. Smelter is expected to process approximately 1.1 million tons of raw materials annually and produce roughly 540,000 tons of finished products.
Planned output includes base metals such as zinc, lead, and copper; precious metals including gold and silver; strategic minerals such as antimony, indium, bismuth, tellurium, cadmium, gallium, germanium, and palladium; and chemical products including sulfuric acid and semiconductor-grade sulfuric acid.
According to project disclosures, 11 of the 13 metals qualify as critical minerals under the 2025 U.S. Geological Survey list. Several, including indium and gallium, are fully import-dependent in the United States.
Site preparation is scheduled to begin in 2026, followed by full construction in 2027. Phased commercial operations are expected to start in 2029, initially focused on zinc, lead, and copper production.
Clarksville was selected due to existing industrial infrastructure, including Nyrstar’s current zinc smelter, the only operating zinc refinery in the United States. Korea Zinc plans to acquire Nyrstar’s U.S. operations, subject to conditions, dismantle the existing facility, and replace it with a larger, modern plant.
Project planners also cited strong transportation links, favorable site conditions, a skilled local workforce with decades of smelting experience, and relatively low electricity costs, a key factor in smelting economics.
Chairman Yun B. Choi said the project aligns with long-term U.S. and South Korean economic security objectives.
“With its project in the United States, Korea Zinc will strengthen its role as a strategic supplier of essential minerals for aerospace and defense,” Choi said.
“This project will serve as a model for U.S.–ROK economic security cooperation at a time of heightened geopolitical risk.” GoldFix Analysis: Why the Tennessee Smelter Matters The Korea Zinc investment fits into a broader pattern across commodities, trade policy, and financial market structure. Recent developments point toward a renewed emphasis on supply security and domestic control over critical industrial inputs....more....
Just as forecasted! Thank you President Trump, now go after the CTFC crooks that have manipulated the PM paper market for decades.
Hi Ho Silver! The gains have been fabulous since 2023.
Silver Price Performance USD
Change Amount %
Today +3.73 +5.12%
30 Days +14.78 +25.47%
6 Months +36.09 +98.26%
1 Year +42.78 +142.39%
5 Year +45.52 +166.75%
20 Years +63.87 +713.45%
silverprice.org - 16:41 NY Time
Silver Smelter Deal
He who smelter dealt-er.
Back in the 70’s, 80’s the U.S. had 160 smelters. Today, less than a handful. It will take a decade for the US to match China’s smelters ( and Switzerland) but this move is a good start.
Rumor has it the plans for six mega smelters to be built, why? The projected rise of Gold, Silver and metals....already at historic gains. The Bitcoiners, thin air, and paper boyz can carry on. The Wealth re-distribution is happening.
Seems really costly for a smelter. It’s not a complicated process. True, it generates a lot of waste, including lots of sulfur fumes.
I had an old uncle who died a few years back. He had been a geologist for over 40 years in the US West, for both the Bureau of Mines and for private companies. He left a lifetime of notes and maps, which he told me contained the location of numerous rare earth mines that the US government shut down in the 1980’s and 1990’s. He also said that the only US-based rare earth processing plant, which was located in Arizona, was sold to the Chinese in the Clinton years and was promptly shut down. After he passed I tried to provide his papers to a number of places - Standford Library, Colorado School of Mines, local museum of mining where I live in CA, etc. No one wanted them. I think one of his daughters had it all destroyed.
True, it generates a lot of waste, including lots of sulfur fumes.
That is a shame, the Missouri school of mines would probably have been interested.
This is a good start. We need more mining and more processing of rare earths. We need to re-establish self sufficiency after Dubya and Obama stupidly allowed China to gain a monopoly in rare earths.
Keep an eye out for NIOCORP. Rare earth mine proposed in Nebraska.
Wasn’t that huge tower/chimney in Anaconda, Montana part of a copper smelting operation at one time? Now is part of a national historical site, I believe. It is really a site to see.
Wasn’t that huge tower/chimney in Anaconda, Montana part of a copper smelting operation at one time? Now is part of a national historical site, I believe. It is really a site to see.
“1 Year +42.78 +142.39%”
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“5 Year +45.52 +166.75%”
NVDA +1300%
“20 Years +63.87 +713.45%”
Apple + 26,000 %
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