The new refinery is projected to reach an annual output of 540,000 metric tons of key materials, including 300,000 tons of zinc, 35,000 tons of copper, 200,000 tons of lead, and 5,100 tons of rare earths. Officials noted that the project will also refine copper and other minerals deemed essential by the U.S. government. Additionally, Korea Zinc plans to restart a zinc mine in Tennessee to supply the complex. Local authorities recently approved a property tax abatement for the development, with the acquisition expected to close in the first half of 2026.
Funding for the project includes Korea Zinc issuing shares valued at $1.9 billion to a joint venture involving the U.S. government and strategic investors based in the United States, granting them around 10% ownership in the company. The U.S. Department of Defense will hold a 40% stake in this venture, while Korea Zinc's portion will be under 10%. The balance of $5.5 billion will come from loans totaling $4.7 billion provided by the U.S. government and financial institutions, plus $210 million in subsidies from the U.S. Commerce Department under the CHIPS and Science Act.
"The Trump administration will continue to leverage every tool at our disposal to end America's foreign dependence for critical minerals and restore working-class prosperity," White House spokesperson Kush Desai said in a statement to Reuters that confirmed the investment.
The announcement impacted Korea Zinc's stock performance, with shares rising as much as 26% during Monday trading in South Korea before closing up 4.9%. The company, recognized as the world's leading zinc smelter, stated that the facility will address growing global supply chain challenges and rising demand for non-ferrous metals and strategic minerals in the United States.
The project is situated near a significant U.S. military base and aims to create 420 new positions, prioritizing hires from retiring service members with starting annual salaries of $86,000, according to local economic development officials.
"Our workforce is young, trainable and usually very disciplined," Buck Dellinger, head of the Clarksville economic development office.
Other international companies, such as LG Chem and Google's parent Alphabet, maintain operations in the Clarksville area.
In October, the United States and South Korea finalized a trade agreement that included adjustments to earlier tariffs and a commitment from South Korea to direct $350 billion toward strategic sectors in the United States.
Major shareholders in Korea Zinc, including the Young Poong conglomerate and MBK Partners—which together hold nearly 50% of the company—criticized the U.S. investment plan, announcing intentions to seek legal action to block the new share issuance.
