Posted on 17 Dec 2025
Metal smelter Korea Zinc said Monday it will build a $7.4 billion metals refinery in the US, following a government request to participate in the project as a “strategic partner.”
“In response to the expansion of global supply chain risks and the growing demand for non-ferrous metals and strategic minerals in the US… there is an increasing need to establish additional production bases,” Korea Zinc said in a regulatory filing.
Its US subsidiary, Crucible Metals, is setting up a joint venture with the US government and “strategic investors in the US,” Kallanish learns. The JV will raise $1.9 billion, with Washington contributing up to $4.7 billion via policy financing support plus $585 million in Department of Commerce grants.
Investors are expected to provide $210m in loans, while Korea Zinc will invest $743m for initial operating expenses such as the acquisition and construction of the smelter site. The South Korean group has agreed to acquire Nyrstar’s smelter in Clarksville, Tennessee, as well as two nearby mining complexes.
The facility, which has been operating for 50 years, is the only zinc smelter in the country and currently supplies feedstock to Trafigura. Nyrstar said Monday the sale is expected to close in the first half of 2026.
Led by Crucible Metals, the smelter will focus on major non-ferrous metals such as copper, rare earths, zinc, precious metals, and lead. Construction is targeted for 2027, with phased operations beginning in 2029.
The production capacity for copper and rare earth metals will be 35,000 tonnes/year and 5,100 t/y, respectively. The largest smelting volume will be reserved for zinc with 300,000 t/y.
Korea Zinc’s Korea-listed shares closed 5% higher on Monday.
Source:Kallanish
