The Defense Department-backed plan to build Korea Zinc’s US Smelter in Tennessee ties a $7.4 billion total investment to a 40% government stake in a JPMorgan-financed joint venture designed to expand domestic processing for base, precious, and strategic metals, including silver.
Korea Zinc is targeting approximately $6.6 billion in capital expenditures, with total investment rising to $7.4 billion when financing costs are included, according to project materials and government statements. US officials describe the project as materially expanding domestic critical minerals processing capacity and strengthening supply chain security.
Under the current framework, the DoD will hold a 40% stake. Deputy Secretary Steve Feinberg said the Department’s conditional investment totals $1.4 billion, framing it as the first US-based zinc smelter and critical minerals processing facility since the 1970s and projecting 750 jobs.
Separately, project materials state the Department will arrange approximately $2.15 billion in financing alongside private investors, with JPMorgan assisting in structuring the financing.
The Commerce Department will provide $210 million under the CHIPS Act to support domestically sourced equipment.
The facility is described as an integrated smelter capable of producing 13 non-ferrous metals. Once fully operational, it is expected to process about 1.1 million tons of raw materials annually and produce roughly 540,000 tons of finished products.
Planned outputs span base metals (zinc, lead, copper), precious metals (gold, silver), strategic minerals (antimony, indium, bismuth, tellurium, cadmium, gallium, germanium, palladium), plus chemical products including sulfuric acid and semiconductor-grade sulfuric acid. Project disclosures say 11 of the 13 qualify as critical minerals under the 2025 US Geological Survey list, and several, including indium and gallium, are fully import-dependent in the US.
Korea Zinc plans to deploy technical personnel and operational expertise from its Onsan Smelter in Ulsan, South Korea, during early phases. Onsan is described as the world’s largest single-site non-ferrous smelting complex, known for processing low-grade and complex materials, including scrap with high impurity content, to reduce commissioning risk and position Clarksville among the most advanced smelters globally.
Site preparation is scheduled to begin in 2026, full construction in 2027, and phased commercial operations are to start in 2029, initially focused on zinc, lead, and copper. Clarksville was selected for industrial infrastructure, transport links, a skilled workforce with smelting experience, and relatively low electricity costs.
The smelter push comes alongside a parallel defense resilience agenda on energy, with the Department accelerating advanced nuclear power, tying a next-year deployment ambition to progress in Project Pele after TRISO fuel was delivered to Idaho National Laboratory, and with the Office of Nuclear Energy describing DOD-DOE work to deploy advanced reactors at military bases and AI data centers by 2027.
Information for this briefing was found via Scottsdale Mint and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
