Annual Production of 540,000 Tons of Essential Materials
"U.S. to Secure Priority Access Starting in 2026"
Howard Lutnick, U.S. Secretary of Commerce, welcomed Korea Zinc's agreement with the U.S. government to build a large-scale smelter in Tennessee, calling it a "big win for America."
On December 15 (local time), Secretary Lutnick wrote on the social media platform X (formerly Twitter), "President Donald Trump has struck a groundbreaking critical minerals deal to strengthen national security, rebuild our industrial base, and end our reliance on foreign supply chains," offering this assessment.
He continued, "Today, together with Korea Zinc, we announced a major investment to build a state-of-the-art critical minerals smelting and processing facility in Tennessee, which will produce 540,000 tons of essential materials annually."
Secretary Lutnick emphasized that the minerals produced at this smelter will be essential for future key industries, including defense systems, semiconductors, artificial intelligence (AI), quantum computing, automobiles, data centers, and advanced manufacturing. He explained, "A variety of minerals such as gallium, germanium, indium, antimony, copper, silver, gold, and zinc will be produced domestically in the United States, supporting a wide range of sectors from fighter jets and satellites to semiconductor plants and the power grid."
He also stated, "Starting in 2026, the United States will secure priority access to Korea Zinc's expanded global production volume," adding, "This will allow us to put America's security and manufacturing at the forefront."
Earlier, on December 15, Korea Zinc held a board meeting and approved the investment plan for the smelter construction. The company announced, "We have formed a strategic partnership with the U.S. Department of Defense and Department of Commerce and are pursuing a joint investment to build a smelter with an area of approximately 650,000 square meters in Clarksville, Tennessee." The total investment for this project, named the "U.S. Smelter," is about 10.95 trillion won, and the U.S. Department of Commerce plans to provide up to about 300 billion won in subsidies under the CHIPS Act.
Secretary Lutnick stressed, "This is how we win-by producing in America, stabilizing our supply chains, and creating quality jobs to maintain America's industrial and technological leadership." He added, "Congratulations to President Trump for delivering another big achievement for America."
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