Korean company to build a critical mineral smelter in the US for 7.4 billion dollars

South Korean media: US Commerce Secretary calls Korea Zinc's smelter construction investment a "major victory for the US"

¬ Announced plans to invest 7.4 billion dollars in Tennessee to build a smelter, and the US political circle has repeatedly expressed welcome, calling it "a big victory for Trump", Korea Zinc has become a "big client" in the lobbying market... strengthening external relations with the US

On the 15th, US Commerce Secretary Howard Lutnick said regarding Korea Zinc's decision to build a large smelter in Tennessee: "President Donald Trump signed a transformative critical minerals contract, strengthened our national security, rebuilt the industrial base, and ended reliance on foreign supply chains. Starting from 2026, the US will have priority in Korea Zinc's global production expansion, putting US security and manufacturing first." Korea Zinc announced on the 15th that it would establish a strategic partnership with the US Department of Defense and the Department of Commerce, investing 7.432 billion dollars (about 10.95 trillion won) in Clarksville, Tennessee, to build a smelter.

Lutnick said on his X (formerly Twitter) that day: "This is a major victory for the US." "This is how we win." "Today, we announced a large-scale investment with Korea Zinc to build an advanced core mineral smelter and processing plant in Tennessee, which will produce 540,000 tons (t) of essential materials annually for the US." He stated that these minerals will support future key technologies such as defense systems, semiconductors, artificial intelligence (AI), quantum computing, automobiles, data centers, and high-end manufacturing. Lutnick said: "Gallium, germanium, indium, antimony, copper, silver, gold, zinc, etc., will be produced domestically in the US, supporting everything from fighter planes and satellites to semiconductor factories and power grids."

Lutnick said: "We can manufacture, secure supply chains, create excellent jobs, and maintain the US' leading position in industry and technology. Congratulations to President Trump for another great victory for the US." The US Department of Commerce will provide up to 210 million dollars (about 30 billion won) in subsidies under the CHIPS Act. The Tennessee location where Korea Zinc decided to invest is one of the "red states" (Republican-dominated areas) with high Trump support, and it is also the district of Senator Bill Hagerty, a Trump loyalist who served as the US ambassador to Japan during his first term. LG Electronics also has a factory in Clarksville producing washing machines and other home appliances.

This investment by Korea Zinc is the largest private-sector project in Tennessee's history. Behind it is "Ballard Partners," a company that can directly connect with US President Donald Trump and has hired lobbyists, including the "Mercury Public Affairs" (MPA) firm, which employed real power figures from the Trump administration - the White House Chief of Staff Susie Wiles, and is known as a "big client" in the lobbying market in Washington, D.C., and has been actively strengthening external relations with the US. Republican Tennessee Governor William Byron Lee said: "Korea Zinc's refining process will play a central role in protecting national security and reducing reliance on China for critical minerals by supporting cutting-edge military technology. This project will consolidate Tennessee's long-term relationship with South Korea, strengthen innovative, excellent manufacturing, and the Korea-US partnership based on shared values."

Hagerty said in a statement that day: "The decision to build the Korea Zinc smelter is a direct result of working with reliable allies like South Korea to support Trump's efforts to restore American economic security." Fellow Republican Senator Martha Blackburn also said: "Tennessee is the best place in the US to do business, and today's announcement by Korea Zinc is proof of that. This move will create more than 700 high-paying jobs and further strengthen our state's manufacturing and mining industries." Also from Tennessee, Republican Representative John Rose said: "Smith County's Nyrstar mine has been shut down since 2023. This mine contains rare earth minerals essential for the production of cutting-edge military technology, and without production, we can only import them from overseas. Thank you to the Trump administration for supporting national security (with this decision)."

Source: Chosun Ilbo

Original: toutiao.com/article/1851652269814795/

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