US and Korea Zinc Forge $7.4 Billion Critical Minerals Venture to Bypass China
The US government has backed a $7.4 billion Korea Zinc plant aimed at reducing reliance on China for critical minerals essential to chipmaking and electronics. The venture will produce antimony, germanium, gallium, and other metals, including zinc, lead, copper, gold, and silver. Commercial output is slated to begin between 2027 and 2029.
Shares of Korea Zinc surged 27% following the announcement, reflecting market optimism. The deal is part of a broader $350 billion South Korean investment pledge tied to a recent tariff agreement. Korea Zinc's chair, Choi Yun-birm, had previously engaged with US officials during a business delegation visit in August.
The joint venture will raise approximately $2 billion, with additional funding coming from US government loans, grants, and Korea Zinc's capital. This marks one of South Korea's largest investments in the US critical minerals sector.
