Trump personally cites Korea Zinc’s U.S. investment... Strategic value of the $7.4 billion smelter [fn Market Watch]

[Financial News]  Korea Zinc is drawing attention as it takes part in the restructuring of critical mineral supply chains through a U.S. smelter project involving an investment of $7.4 billion. As the United States seeks to change a strategic-mineral procurement structure concentrated in certain countries, including China, Korea Zinc’s nonferrous metal smelting technology is being used to establish a local production base. With local politicians also focusing on the investment’s impact, following U.S. President Donald Trump, a favorable environment for moving the project forward is taking shape.
According to industry sources on the 15th, Korea Zinc is pursuing Project Crucible, which will build an integrated nonferrous metal smelting and processing facility in and around Clarksville, Tennessee. The total investment is approximately $7.4 billion. The project is also reportedly set to include $210 million in support under the U.S. Department of Commerce’s CHIPS Act.
The project’s core lies in its products and smelting capabilities. Korea Zinc is pursuing U.S. production of strategic minerals used in semiconductors and the defense industry, including gallium, germanium, indium, and antimony. The project dovetails with U.S. supply chain policy, which seeks to build refining and processing facilities domestically as well as secure minerals.
The U.S. Department of Commerce is also emphasizing the need to secure material supply chains for expanding semiconductor production facilities. At the CEO Summit at Semicon West 2026, held on the 13th (local time), the stable procurement of chemicals, specialty gases, and critical minerals essential to semiconductor manufacturing was cited as a key challenge. Korea Zinc’s U.S. project was also reportedly presented as an example of strengthening supply chain resilience.
The response from local politicians has also been positive. According to Nashville-area broadcaster WKRN, Clarksville Mayor Joe Pitts welcomed Korea Zinc’s investment, saying that securing critical minerals was a matter of national importance at this time. Tennessee State Representative Ronnie Glynn also expressed optimism about the plan to acquire an existing zinc smelter and double its size.
Earlier, at a rally in support of Republican candidates in the midterm elections held in Tennessee on the 10th, President Trump personally said that Korea Zinc would invest at least $6 billion and create 740 jobs. He was emphasizing the policy benefits of expanding the U.S. manufacturing base and creating local jobs.
For Korea Zinc, this is an opportunity to expand the technology it has built up at the Onsan Refinery of Korea Zinc Company Ltd. into a U.S.-based production system. At the same time, given the large capital investment involved, construction costs, the financing structure, and securing stable sources of demand are expected to be key factors in the project’s future viability.
Meanwhile, the nonferrous metals industry has taken note of the fact that the U.S. strategy for securing critical minerals is expanding from procuring raw materials to building refining and processing facilities. The analysis is that this is creating a landscape in which the role of companies with actual production technology is growing, alongside that of countries with mineral resources.
An industry source said, "What the United States needs now is not just mineral reserves, but the refining and processing capabilities to supply materials for actual industrial use," adding, "Korea Zinc’s local investment is significant because it aligns with U.S. policy to bring supply chains onshore."  

[email protected] Kim Kyung-ah Reporter