Seoul: Korea Zinc Co. and the U.S. government are collaborating to invest approximately 10 trillion won (US$6.8 billion) in building a critical metals refinery in the southeastern United States, officials announced Monday. The collaboration was confirmed during Korea Zinc's board of directors meeting earlier in the day.

According to Yonhap News Agency, the plan includes establishing a joint venture (JV) and involves a strategic partnership with the U.S. Departments of War and Commerce. The project, named "U.S. Smelter," will see the construction of a 65-square-meter refinery in Clarksville, Tennessee. The U.S. is anticipated to contribute around 2 trillion won in partnership with American defense firms for the project.

The decision to construct the plant in Tennessee followed a review of more than 60 candidate sites, highlighting the state's stable supply of water and electricity essential for smelting, as well as its logistical advantages. Korea Zinc has already reached an agreement with Nyrstar to acquire the site of an existing refinery, planning to upgrade its infrastructure using advanced processing technology.

Construction of the smelter is set to begin next year, with commercial operations expected to start in phases from 2029. The refinery aims to bolster the U.S. supply and production of critical metals, including antimony and germanium, as part of efforts to counter Chinese export restrictions on rare earths and critical metals.

Korea Zinc Chairman Choi Yoon-beom previously announced plans for a strategic metals partnership with the U.S. during his visit to the country in August, following a summit between President Lee Jae Myung and U.S. President Donald Trump. During this visit, Korea Zinc also signed a memorandum of understanding with Lockheed Martin Inc. to invest approximately 140 billion won in establishing a germanium-producing facility in South Korea.