US smelter acquisition by Korea Zinc aims to secure critical minerals amid China tensions

In a significant move towards securing critical mineral supply chains, South Korean company Korea Zinc has acquired the Crucible Zinc smelter in Clarksville, Tennessee. Rebranded as Crucible Zinc, the facility represents an unprecedented collaboration between a Korean company and the U.S. government, aiming to bolster American production of essential metals.

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We operate the plant 24 hours a day, seven days a week. We haven't stopped operations except for annual maintenance since it opened in 1978.

The smelter, located along the Cumberland River, benefits from Tennessee's affordable industrial electricity and abundant water resources. It has operated continuously for 48 years, processing about 600 tons of zinc concentrate daily from local and imported sources. The facility has seen multiple ownership changes since its establishment in 1978. Korea Zinc plans to expand the site, adding a new integrated smelter expected to begin partial operations by 2029 and full operation by 2030.

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This pond contains large amounts of rare metals essential for America's advanced industries, such as germanium, gallium, silver, and copper, in addition to iron, zinc, and lead. It's difficult to put an exact value on it, but it's in the billions of dollars.

Crucible Zinc holds hidden "treasures" within its grounds, including large settling ponds, known as "ponds," containing decades of smelting byproducts. These ponds are estimated to hold billions of dollars worth of rare metals essential for advanced industries, such as germanium, gallium, silver, and copper, in addition to iron, zinc, and lead. Korea Zinc plans to apply its proprietary technology to recover these valuable metals from the byproducts, which were previously uneconomical to extract.

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Korea Zinc Chairman Choi Yoon-beom visited the site himself and stated, 'Just looking at the value of the pond makes it an attractive deal,' and he was exactly right.

The "Project Crucible" initiative is a direct response to the U.S.-China trade war, where China has used its control over critical mineral exports as leverage. Recognizing its vulnerability, the U.S. has accelerated efforts to build domestic supply chains from mining to refining. The partnership with Korea Zinc, which possesses decades of operational experience and advanced refining technology, is a key part of this strategy. The expanded smelter will produce 12 types of non-ferrous metals, including zinc, lead, copper, gold, silver, antimony, indium, bismuth, tellurium, gallium, and germanium, along with sulfuric acid for semiconductor production. Notably, 11 of these are designated as critical minerals by the U.S. government. The facility aims to meet the entire domestic demand for germanium and gallium, metals heavily reliant on Chinese supply.

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The United States is a net importer of zinc. All the zinc that Korea Zinc will newly produce will be consumed in the United States, and even then, it will only meet about 30% of America's total demand.