Chair of Critical Minerals Alliance Eric Swalwell
"Concerns Over Chinese Involvement if MBK Acquired"
"US-ROK Efforts to Block Chinese Influence Weakened"
A U.S. House Representative has expressed concerns over the management dispute at Korea Zinc. Viewing it as an issue that could threaten the stability of critical mineral supply chains, calls have been made for the U.S. Department of State to actively intervene. Warnings were also issued that it could have significant impacts on the security and economy of both South Korea and the United States.
According to the non-ferrous metals industry on the 26th, Eric Swalwell, co-chair of the 'Critical Materials Caucus' within the U.S. Congress, sent an official letter to Jose Fernandez, Deputy Secretary of State, expressing concerns about the Korea Zinc situation.
In the letter, Representative Swalwell described Korea Zinc as a "key company in diversifying the global critical minerals supply chain and decoupling value chains from China," urging an active role from the U.S. government. He emphasized, "Korea Zinc produces the world's largest quantities of zinc, as well as silver and copper, and its nickel refining technology is essential for major battery manufacturers to establish stable supply chains independent of China."
He pointed out that if MBK Partners secures management rights over Korea Zinc, several adverse effects are expected. Swalwell cited multiple cases, explaining, "MBK Partners is a private equity fund operating mainly in Northeast Asia and has significant ties to China."
He continued, "This background of MBK Partners raises the possibility of Chinese involvement in Korea Zinc's operations, which could weaken the joint efforts of South Korea and the U.S. to block the transfer of critical technologies and Chinese influence."
Regarding Korea Zinc's secondary battery material technology (national core technology and national advanced strategic technology), he stressed that it is essential for maintaining the competitiveness of the Korean battery industry against companies strongly supported by China, and that government-level technology protection measures must be implemented.
Swalwell mentioned the increased supply chain risks due to China's export controls on gallium, germanium, antimony, graphite, and other materials, stating, "Cooperation within the South Korea-U.S. alliance to strengthen supply chains and thorough transaction reviews have become even more important."
He also called for active involvement from the U.S. government regarding the Korea Zinc situation. Swalwell urged, "Considering the impact of the Korea Zinc issue on the national security and economy of both countries, the U.S. government should closely cooperate with South Korea's Ministry of Foreign Affairs and Ministry of Trade, Industry and Energy."
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