[Exclusive] Korea Zinc to Increase Bismuth Production by Over 500 Tons per Year Amid China Export Controls

Annual Capacity Expansion from 1,000 to 1,500 Tons
Investment May Begin This Year, Completion Expected Next Year
Prices Surge in One Year Due to Chinese Export Controls

Korea Zinc has been confirmed to be considering expanding its bismuth production facilities, a key strategic mineral, by more than 1.5 times. This move is seen as an effort to strengthen its position as a stable supplier of major strategic minerals amid growing instability in the global supply chain due to China’s recent export controls on rare metals.

Lee Jejung, CTO and Vice Chairman of Korea Zinc, is visiting the indium plant within the Korea Zinc Onsan Smelter to inspect the produced products. Photo by Korea Zinc

According to industry sources on June 17, Korea Zinc is internally discussing a plan to increase its annual bismuth production capacity, currently at 900 to 1,000 tons, to at least 1,500 tons or more. While the specific timing and scale of the investment are still being coordinated, the investment could begin as early as this year and be completed by next year. Korea Zinc’s decision appears to be a proactive response to the growing global imbalance in the supply and demand of strategic minerals and the sharp rise in market prices.

Bismuth is a rare metal used in a variety of industries, including automotive transmission components and high-temperature superconducting materials. In particular, from 2020 to 2023, the United States relied on China for 67% of its bismuth imports, while Korea was the second-largest supplier, accounting for 23%. An industry official commented, “For U.S. buyers seeking to reduce dependence on China, Korean bismuth could serve as a strong alternative.”

In September last year, China’s Ministry of Commerce imposed export controls on strategic minerals such as bismuth, tungsten, and indium, resulting in a global supply shortage. In addition, the high tariffs imposed under the “America First” policy and hardline stance against China of the Donald Trump administration contributed to a sharp increase in bismuth prices. While the price of bismuth was around $10 per kilogram (approximately 13,600 won) as of March last year, it surged to around $80 per kilogram by March this year. This means the price has risen more than sevenfold in just one year.

Recently, Korea Zinc made a preemptive investment to build a supply chain independent of China by acquiring a 5% stake in The Metals Company (TMC), a Canadian mineral resource development firm. TMC is a deep-sea resource development company preparing to mine polymetallic nodules (manganese nodules) from the seabed, and Korea Zinc believes this acquisition could also contribute to the Korean government’s negotiations with the United States.

Prior to this, Korea Zinc also achieved a milestone by exporting 20 tons of antimony, another strategic mineral, to the United States. This marks the first time antimony has been exported from Korea to the U.S. The antimony will be supplied to more than 10 U.S. companies, including those in the defense industry, and will be used in alloys for armor-piercing ammunition, semiconductor manufacturing, military electronic equipment, and aerospace solder alloys.

Thanks to increased sales of these rare metals, Korea Zinc posted its best-ever quarterly results in the first quarter. Sales reached 3.8328 trillion won, up 61.4% year-on-year, while operating profit increased by 46.9% to 271.1 billion won.