Production Capacity: 13 Nonferrous Metals, 540,000 Tons Annually, Phased Operations and Commercial Production Starting 2029

Construction of the U.S. Smelter will begin with site preparation in 2026, followed by phased commercial operations from 2029. The facility will process approximately 1.1 million tons of raw materials annually and produce a total of 540,000 tons of finished products.

Construction of the U.S. Smelter will begin with site preparation in 2026, followed by phased commercial operations from 2029. The facility will process approximately 1.1 million tons of raw materials annually and produce a total of 540,000 tons of finished products.

The 13 planned products include basic industrial metals such as zinc, lead, and copper; precious metals including gold and silver; and key strategic minerals such as antimony, indium, bismuth, tellurium, cadmium, palladium, gallium, and germanium. The list also includes sulfuric acid and semiconductor-grade sulfuric acid.

Construction Plan and Applied Technology… Location Advantages of Clarksville, Tennessee and Nyrstar Smelter Acquisition Benefits

Korea Zinc will begin site preparation and foundational work in 2026, and proceed with EPC (Engineering, Procurement, Construction) contractor selection and equipment procurement. Full-scale construction will start in 2027, with completion planned for 2029, followed by phased operations beginning with zinc, lead, and copper operations in 2029.

Korea Zinc will construct an integrated smelter of approximately 650,000 m² in Clarksville, Tennessee, based on the model of its Onsan Smelter in Ulsan – the world’s largest single-site smelter by production capacity – by applying world-leading smelting technology, optimal processes, and state-of-the-art control systems.

Nyrstar’s current smelter in Clarksville, Tennessee – which is the planned location for the new Korea Zinc smelting facility – is regarded as having excellent conditions for smelter operations, including soil stability, drainage, and groundwater characteristics, as well as offering strong logistics accessibility. In addition, the existing Nyrstar facility – as the only zinc smelter in the United States, operating for nearly 50 years – enables the transfer and continuation of employment for several hundred highly skilled professionals with deep expertise in zinc processing. To make effective use of this existing infrastructure, Korea Zinc has reached an agreement to acquire Nyrstar’s U.S. operations subject to certain conditions.

Furthermore, electricity rates – one of the largest smelting costs – are relatively low in the region, offering significant cost advantages in terms of processing fees. Various support measures at the U.S. federal and state government levels are also being actively reviewed.

Korea Zinc Secures Both Business Stability and Growth Potential by Establishing A Strategic Base in The ‘World’s Largest Demand’ Market

For Korea Zinc, this U.S. smelter construction establishes a strategic North American production hub that strengthens both business stability and growth potential.

Establishing a production base in the United States – where investment, regulatory, and policy predictability are high – is expected to effectively transform geopolitical volatility, export restrictions, and logistics disruptions into strategic opportunities. In addition, sourcing raw materials and scrap directly from the United States will diversify the global supply chain and enable more flexible corporate responses.

The United States is one of the world’s largest consumers of critical minerals, driven by the concentration of electric vehicles, batteries, data centers and artificial intelligence (AI), semiconductors, and defense industries. This demand provides opportunities for Korea Zinc’s aggressive market expansion and allows Korea Zinc to become a trusted partner in the U.S. critical minerals supply chain.

U.S. Actively Pursues ‘Supply Chain Independence’ Strategy for National Security… Reducing Overreliance on Specific Countries for Smelting and Refining

Recently, the U.S. is experiencing rapid growth in demand for base metals such as zinc, lead, and copper, as well as strategic minerals including antimony, indium, gallium, and germanium, driven by advanced and strategic industries such as electric vehicles, batteries, AI, and semiconductors. However, with many domestic smelting facilities aging or closed, domestic supply is limited, leading to structural supply chain vulnerabilities that the U.S. is actively working to address. In fact, *according to the U.S. Geological Survey (USGS), some critical minerals such as indium and gallium are currently 100% import dependent.

In this context, Korea Zinc’s U.S. smelter construction – pursued through strategic partnership with the U.S. Department of War and the U.S. Department of Commerce – is expected to become a model case for the U.S. Government’s supply chain independence, economic security reinforcement, and U.S.-ROK supply chain cooperation.

Financing Structure: Designed for a Long-Term Strategic Partnership… Win-Win for Korea Zinc and U.S. Government

The U.S. Smelter construction requires an investment of approximately $7.4 billion. Approximately $2.15 billion, arranged by the U.S. Department of War together with investors, will be invested in the smelter construction.

Korea Zinc’s local subsidiary will oversee smelter construction using this capital and other funds. The U.S. Department of Commerce will provide $210 million in award funding under the CHIPS Act for U.S. equipment procurement and other purposes.

“Korea Zinc’s critical minerals project in Tennessee is a transformational deal for America,” said Secretary of Commerce Howard Lutnick. “Our country will now produce, in volume, 13 critical and strategic minerals that are vital to aerospace and defense, semiconductors, AI, quantum computing, autos, industrials, and national security. With our investment in this state-of-the-art project, we are decisively strengthening our national and economic security by producing these critical minerals at scale and thus reducing dependence on foreign nations. Additionally, the United States has preferred access to a portion of Korea Zinc’s expanded production in South Korea.”

“President Trump has directed his Administration to prioritize critical minerals as essential to America’s defense and economic security,” said Deputy Secretary of War Steve Feinberg. “The Department of War’s conditional investment of $1.4 billion to build the first U.S.-based zinc smelter and critical minerals processing facility since the 1970s reverses 50 years of industrial decline. The new smelter in Tennessee creates 750 American jobs to unlock strategic minerals as a force multiplier across aerospace, defense, electronics, and advanced manufacturing without chokepoints.”

World-Class Technology and Process Know-How Applied to Smelter Construction

Korea Zinc plans to apply the world-leading smelting technology and operational expertise of its Onsan Smelter to the U.S. facility. Additionally, key personnel from the Onsan Smelter will be dispatched early to rapidly secure operational stability and minimize technical risks.

The Onsan Smelter is Korea Zinc’s core base as the world’s number one producer in zinc and other nonferrous metals, and is the world’s largest single-site smelter. It has secured advanced technology to process complex raw materials, such as low-grade concentrates and scrap with high impurity levels, and has established integrated zinc-lead-copper processes to maximize valuable metal recovery rates, demonstrating global competitiveness.

Korea Zinc’s partnerships with the U.S. Department of War and the U.S. Department of Commerce to build an integrated smelter ensure not only successful construction but also superior competitiveness.

Chairman Yun B Choi said: “With its project in the United States, Korea Zinc will solidify its position as a strategic partner supplying essential minerals for aerospace and defense. This will become a model case of strengthened U.S.-ROK economic security cooperation. Given the current geopolitical climate and strong U.S. support, now is the optimal moment for expansion into the American market.”