National Korea Zinc, US seek to jointly invest in US critical metals refinery

Korea Zinc Co. and the US government are seeking to jointly invest around 10 trillion won ($6.8 billion) in the construction of a critical metals refinery in America's southeastern region, officials said Monday.

The plan involving an envisioned joint venture was finalized at Korea Zinc's board of directors meeting earlier in the day, according to the local metal producer.

"We decided to build a comprehensive nonferrous metal refinery in the United States to strengthen our drive for future growth," Korea Zinc said in a public notice.

In a subsequent press release, the company stated it had signed a strategic partnership with the US Departments of War and Commerce, with plans to initiate a joint investment to construct a 65-square-meter refinery in Clarksville, Tennessee. The project was named "US Smelter," it added.

Washington is said to have pushed for the plant's construction and is expected to invest around 2 trillion won with US defense firms in the JV with Korea Zinc Inc., according to officials.

After reviewing more than 60 candidate sites, the two sides have decided to build the plant in the southeastern US state of Tennessee, citing its stable supply of water and electricity required for smelting and its logistical accessibility.

Specifically, Korea Zinc plans to take over the site where an existing refinery owned by Nyrstar is located and rebuild its infrastructure using advanced processing technology. It had already reached an agreement with Nyrstar on the takeover, according to officials.

The smelter is set to begin construction next year, starting with site preparation, and plans to commence commercial operations in phases from 2029.

The upcoming refinery will serve as a US foothold for the supply and production of critical metals, including antimony and germanium.