Korea Zinc, US firm to build JV in US to secure rare earth materials

Korea Zinc Chairman Choi Yoon-beom speaks at a press conference at the Korea Chamber of Commerce and Industry building in central Seoul, Dec. 13. Korea Times photo by Choi Joo-yeon

Korea Zinc, the world's biggest refined zinc smelter, said Tuesday it has partnered with a U.S. company to secure rare earth materials amid growing concerns over global supply chain security.

Under the partnership, Korea Zinc and Alta Resource Technologies will set up a joint venture (JV) in the United States to process end-of-life permanent magnets into purified rare earth oxides, the company said in a press release.

The JV plans to build a 100-ton-per-year processing facility at an existing U.S. site operated by PedalPoint, Korea Zinc's wholly owned U.S.-based resource recycling subsidiary, with the aim of beginning operations in 2027, it said.

"Following our initiative to construct a smelter in the U.S. that will serve as a central pillar of the Korea-U.S. critical minerals supply chain, this cooperation between the two companies marks an important milestone in the rare earths sector," Korea Zinc Chairman Choi Yun-beom said.

Korea Zinc will serve as a reliable supply chain partner, ensuring the stable provision of rare earth elements to advanced industrial companies in both Korea and the U.S., he added.

The company plans to invest $7.4 billion to build a smelter in the southeastern U.S. state of Tennessee and begin operations in 2029.

"Korea Zinc has the recycling feedstock and global expertise; we have a separation technology purpose-built for the complex mixtures found in end-of-life magnets. Together, we can produce the rare earth oxides that American manufacturers need from materials that are already here," Alta co-founder and Chief Executive Officer (CEO) Nathan Ratledge said.