❓WHAT HAPPENED: Korea Zinc announced plans to build a $7.4 billion critical minerals smelter in Tennessee.
👤WHO WAS INVOLVED: Korea Zinc, U.S. Department of War, U.S. Department of Commerce, Deputy Secretary of War Steve Feinberg, Commerce Secretary Howard Lutnick, and White House Deputy Press Secretary Kush Desai.
📍WHEN & WHERE: Announced December 16, 2025; smelter location in Tennessee.
💬KEY QUOTE: “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 Deputy Press Secretary Kush Desai
🎯IMPACT: The project will create 750 jobs and produce 540,000 tons of essential materials annually.
Korea Zinc has unveiled plans to construct a $7.4 billion smelter in Tennessee, marking the first U.S. zinc refinery since the 1970s. The project is being backed by the Trump administration as part of efforts to secure supply chains and counter China’s dominance in critical minerals.
The facility is set to cover 650,000 square meters, with the U.S. Department of War and the U.S. Department of Commerce investing jointly in its construction. Notably, the Department of War will hold a 40 percent stake in the venture. Korea Zinc will control less than a 10 percent stake and will sell an estimated $1.9 billion in shares to a joint venture comprising U.S.-based investors to finance part of the project. The remaining $5.5 billion in financing will be provided through $4.7 billion in U.S. government loans and a $210 million subsidy from the Department of Commerce.
“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 Deputy Press Secretary Kush Desai said in a statement. According to the Trump administration, the partnership will help bolster and diversify global supply chains, reducing dependency on China, which currently leads in the supply of minerals crucial for military and technological applications.
U.S. Deputy Secretary of War Steve Feinberg highlighted the project’s proximity to a major U.S. military base, emphasizing its role in creating 750 American jobs and increasing the availability of strategic minerals. Meanwhile, Commerce Secretary Howard Lutnick described the deal as a “Big win for America,” emphasizing the production of 540,000 tons of essential materials annually, which are vital for defense systems, semiconductors, artificial intelligence (AI), and more.
Image by Goodwin Steel Casting.
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