Tennessee $7.4 Billion Smelter Deal Aims to Break China’s Grip on Critical Minerals

Tennessee $7.4 Billion Smelter Deal Aims to Break China’s Grip on Critical Minerals

President Donald Trump’s plans to strategically secure U.S. critical mineral supplies are moving forward at a rapid pace.

The Pentagon and the Commerce Department have announced plans to team up with a South Korean firm, Korea Zinc, on a $7.4 billion Tennessee smelter that will mass-produce critical defense minerals, including rare earths, copper, gallium, germanium, and antimony.

JPMorgan Chase & Co. and the US government are backing Korea Zinc Co.’s planned $7.4 billion smelter in Tennessee that will supply critical minerals essential for chip-making, defense and aerospace.

Korea Zinc — one of the world’s largest processors of the metal — said Monday it will establish a foreign joint venture called Crucible JV LLC to oversee the project. The venture will be comprised of Korea Zinc, the US government, and other unnamed investors, the company said.

One of those investors is JPMorgan, which also advised the company on the public-private partnership, according to a person familiar with the matter who asked not to be identified citing private details.

The deal is the latest in a flurry of Trump administration measures aimed at establishing domestic supply chains for key minerals. China dominates the critical minerals sector, leaving US industries dependent on foreign imports of the material.

🚨 BREAKING: In a massive win, President Trump just secured the construction of a $7.4 BILLION critical minerals smelter and processing facility in the great state of TENNESSEE, USA 🇺🇸

It will create 540K TONS per year of materials – in America. The DEPARTMENT OF WAR will hold… pic.twitter.com/pBgVlyd6AG

— Eric Daugherty (@EricLDaugh) December 15, 2025

The plans are for the new facility to open in 2029, and for the Department of DefenseWar would have a 40% stake in the company.

An existing zinc refinery in Clarksville, Tennessee – roughly 50 miles (80 km) northwest of Nashville – will be bought from Trafigura’s Nyrstar, torn down and replaced by a larger facility that will open in 2029 and grow to annual output of 540,000 metric tons of critical minerals, including 300,000 tons of zinc, 35,000 tons of copper, 200,000 tons of lead and 5,100 tons of rare earths, officials said.

“The Trump administration will continue to leverage every tool at our disposal to end America’s foreign dependence for critical minerals and restore working-class prosperity,” White House spokesperson Kush Desai said in a statement to Reuters that confirmed the investment.

Under the plan, Korea Zinc will sell shares worth $1.9 billion to a joint venture controlled by the U.S. government and unnamed U.S.-based strategic investors, who would then control around 10% of the South Korean firm.

The U.S. Department of Defense will hold a 40% stake in the venture, while Korea Zinc’s stake will be less than 10%.

Korea Zinc will secure the remaining $5.5 billion for the plant through $4.7 billion in loans from the U.S. government and financial institutions as well as $210 million in subsidies from the U.S. Commerce Department under the CHIPS and Science Act.

The smelter and associated facilities are expected to create over 700 new jobs and significantly revive the regional economy.

As part of a White House deal to protect critical metals for the U.S., Korea Zinc announced Monday it will purchase Nyrstar Zinc in Clarksville and build a new $6.6 billion smelter. The site will also house the company’s U.S. headquarters, combined creating 420 new jobs in Montgomery County over the next five years.

The move also includes a new production facility in Gordonsville, creating 320 jobs in Smith County. In Gordonsville, the company plans to reopen a former mine, bringing back lost jobs and industry to the community, according to a state news release.

The announcement represents the company’s first U.S. locations and the largest single private corporate investment made in state history, the release said.

Price of a smelting plant in U.S. = $7.4 Billion.
Citizen Wealth Created in Tennessee > $100 Billion
Price of Freeing U.S. Supply Chain from China…Priceless.

America First – Don't Make Policies Without It! https://t.co/Qbc2vps7iV

— Leslie Eastman ☥ (@Mutnodjmet) December 16, 2025

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