Korea Zinc Will Build $7.4 Billion Tennessee Smelter

The state's new facility will process critical minerals to help manufacturers reduce dependence on foreign supply chains.

Updated on Oct. 12, 2026 in Manufacturing

Korea Zinc Will Build $7.4 Billion Tennessee Smelter

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Korea Zinc plans to develop Project Crucible, a $7.4 billion mineral smelter across Montgomery and Smith counties. This initiative represents the first new mineral smelter built in the United States since 1979.

Why it matters

The project aims to secure domestic processing for 11 critical minerals, a strategic move by Washington to decrease reliance on China and other overseas suppliers. This development signals a significant shift in industrial capacity for domestic manufacturing supply chains.

The $7.4 billion facility will create 740 jobs while processing 11 minerals designated as critical by the U.S. government. This marks the first major addition to the domestic mineral processing sector since the opening of the last new smelter in 1979.

The players

Korea Zinc

A global leader in non-ferrous metal smelting and manufacturing.

Howard Lutnick

The current Commerce Secretary of the United States.

Donald Trump

The current President of the United States.

The details

Project Crucible will establish domestic processing capacity for materials including zinc, lead, copper, and palladium. By creating a localized source for these inputs, the facility intends to shorten supply chains for manufacturers currently dependent on international markets. The project is being developed in cooperation with the U.S. government and various partners.

1979: The year the last new mineral smelter opened in the United States.
Aug. 7, 2026: Commerce Secretary Howard Lutnick discussed the project at a supply chain roundtable.
Oct. 10, 2026: The project was referenced by Donald Trump at a rally.

Market Landscape

This investment directly addresses the U.S. government critical mineral designation by establishing domestic processing capacity. It represents a departure from decades of reliance on global supply chains that have characterized the industry since 1979.

Manufacturers reliant on the 11 minerals slated for production should track this project as a potential future domestic sourcing alternative. Increased domestic capacity could eventually stabilize input costs and reduce the logistical risks associated with overseas procurement.

The takeaway

The move marks the most significant expansion of domestic smelting capacity in nearly 50 years. Operators should monitor the progress of Project Crucible to determine if it will offer a viable domestic alternative to existing international mineral suppliers in the coming years.