Korea Zinc’s $7.4B Investment to Transform Middle Tennessee Region

Korea Zinc, a leading South Korean firm, is set to make a historic $7.4 billion investment in Middle Tennessee, marking the largest capital investment in the state’s history. This project will rejuvenate historic mining operations and establish new refining facilities aimed at processing critical minerals, particularly rare earth elements.

Korea Zinc’s Transformational Investment

This significant investment was announced on December 15, 2023, with the goal of bolstering the U.S. supply chain for critical minerals and reducing dependency on China. The project will involve refurbishing a zinc smelter in Clarksville, which Korea Zinc is acquiring from Nyrstar, and revitalizing the nearby Smith County zinc-mining complex, including reopening the dormant Gordonsville mine.

Impact on Local Economy

• Creation of 740 jobs in the region.
• Enhanced processing capabilities for rare earth minerals, which are essential for technology, defense systems, and electric vehicles.
• Significant growth in Tennessee’s economy through foreign direct investment; South Korean companies have invested around $7.2 billion since 2019.

“It’s a transformational deal,” stated Josh Brown, CEO of the Tennessee Chamber of Commerce, emphasizing the increasing confidence in Tennessee’s economic potential. Korea Zinc Chairman Yung B. Choi expressed that Tennessee’s skilled workforce and robust infrastructure make it a prime location for this project.

Strategic National Security Efforts

Experts describe this investment as a crucial step in restoring U.S. capabilities in critical mineral processing, thereby enhancing national security. The project’s objectives align with a national strategy aimed at mitigating reliance on China’s dominant position in the global rare earth market, where it controls approximately 91% of production.

Strengthening Workforce Development

Korea Zinc’s initiative will also emphasize workforce development in Tennessee. The company plans to collaborate with local educational institutions to ensure that training aligns closely with the skills required in the mining and refining sectors.

As the project unfolds, Tennessee’s Economic and Community Development Commissioner, Stuart McWhorter, highlighted the importance of these strategic investments for workforce pipeline validation and regional growth.

Infrastructure Upgrade Initiatives

The Tennessee Valley Authority (TVA) is preparing for significant infrastructure upgrades to accommodate the energy demands of Korea Zinc’s operations. They are investing $4.2 billion this fiscal year in transmission upgrades, with total planned investments reaching $11 billion over three years. This will support both local utilities and the anticipated economic boom linked to the project.

As secondary businesses emerge to support this industry, the overall economic landscape of Middle Tennessee is expected to evolve, fostering growth and new opportunities for the community.