FACTBOX-Trump administration pivots to buying stakes in critical sectors
Details: Korea Zinc will build a $7.4 billion smelter in Tennessee through a joint venture with U.S. partners.The U.S. Department of War will hold a 40% stake in the JV, while the Commerce Department will provide $210 million in subsidies under the CHIPS Act.Korea Zinc will issue $1.9 billion in new shares to the JV and U.S. strategic investors, giving them about 10% of the company.The remaining $5.5 billion will come from $4.7 billion in U.S.-backed loans and other financing. Construction begins in 2026, with phased operations starting in 2029.Strategic Value: The project strengthens U.S. supply chains and reduces reliance on China, which dominates global critical mineral supply and recently restricted exports of antimony and germanium to the U.S.
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