[Exclusive] Korea Zinc Plans Scaled-Down Onsan Smelter in the U.S.: "Considering Two-Thirds the Size"

Soonheum Baek: "Scaled-Down Onsan Model Possible in the U.S."
Hints at Expanding Investment Beyond Germanium to Other Strategic Minerals
Detailed Blueprint Unveiled Following Yoonbeom Choi's U.S. Visit

Korea Zinc is considering establishing a new smelter in the United States with a capacity two-thirds the size of its domestic facility. Yoonbeom Choi, Chairman of Korea Zinc, recently visited the United States as part of the economic delegation for the Korea-U.S. summit, where he stated, "We are seriously considering investing in building a core mineral supply chain in the U.S." This has led to speculation that the company may be revealing concrete plans.

Soonheum Baek, President and Head of the Management Group at Korea Zinc, met with Asia Economy at the "2025 Energy Expo" in Busan on the 27th and said, "Based on our experience with the Onsan Smelter, we can implement a scaled-down smelter model in the U.S.," adding, "It is possible to build a facility at two-thirds the size and half the cost compared to the original." It appears that this assessment was made in anticipation of a request from the U.S. side.

Soonheum Baek, president of Korea Zinc (second from left), is listening to an explanation from an official at the booth of the "2025 Energy Expo" held at BEXCO in Busan on the 27th. Busan=Photo by O Jieun

The Onsan Smelter, located in Ulju County, Ulsan, is the world's largest comprehensive smelter, occupying 430,000 pyeong (1.42 million square meters) and producing 1.2 million tons of non-ferrous metals annually. Unlike typical smelters that produce only specific metals, the Onsan Smelter manufactures a total of 18 types of metals. Baek explained, "There is a request from the U.S. not just for one or two metals, but to transplant Onsan's complex smelting capabilities as a scaled-down model." If a model with two-thirds the production capacity is established in the U.S., it would enable local production of 800,000 tons of non-ferrous metals annually.

Previously, Chairman Choi visited the U.S. and discussed cooperation on core mineral supply chains with government officials and representatives from Lockheed Martin, expressing a commitment to building a supply chain for strategic minerals independent of China. On this occasion, Korea Zinc also signed an agreement with Lockheed Martin to supply high-purity germanium. The company plans to invest 140 billion won in the Onsan Smelter to build facilities capable of producing 10 tons of high-purity germanium annually, with operations set to begin in the first half of 2028. President Baek remarked, "Starting with germanium, investments in other strategic minerals in the U.S. may follow."

Korea Zinc's consideration of constructing a smelter in the U.S. appears to reflect the U.S. government's determination to secure a stable supply chain. Korea Zinc is the only domestic producer of antimony and indium. The company recovers more than 3,500 tons of antimony annually and sold 971 tons in the first quarter of this year. During this period, sales reached 59.6 billion won, a fivefold increase from 12.5 billion won in the same period last year, marking a record quarterly high. Korea Zinc also produces 150 tons of indium annually, accounting for about 11% of global demand and 30% of U.S. imports. In a strategic mineral market heavily dependent on China, Korea Zinc represents a crucial option for the U.S. In June, the company supplied its first 20 tons of indium to the U.S. via spot trading and plans to expand this to 100 tons this year and over 240 tons in 2026.

This is significant in terms of diversifying the strategic mineral supply chain, which is more than 70% dependent on China, and achieving tangible results in Korea-U.S. economic security cooperation. In June, Korea Zinc acquired a 5% stake in The Metals Company (TMC), a Canadian resource development firm listed on the U.S. Nasdaq, for 85 million dollars (118.3 billion won), unveiling plans to secure minerals based on a local manganese nodule exploration project. The company is also considering operating the smelter using locally sourced minerals.

Korea Zinc is exhibiting its representative strategic minerals antimony, indium, bismuth, and tellurium at its booth at the '2025 Energy Expo' held at BEXCO in Busan. Photo by Oh Jieun

Korea Zinc is currently also strengthening its resource recycling base in the U.S. Pedalpoint, a subsidiary of its U.S. affiliate Pedalpoint Holdings, operates six recycling hubs in the U.S., where it crushes and sorts waste batteries, solar panels, and electronic waste to produce intermediates, which are then shipped to the Onsan Smelter for metal recovery. President Baek stated, "In 10 to 15 years, as secondary battery recycling becomes widespread, the key will be how and where to collect these heavy and difficult-to-transport batteries," adding, "Since we already have a scrap network in the U.S., we expect to gain a first-mover advantage."

A Korea Zinc representative commented on this matter, stating, "Nothing has been confirmed internally at this stage."