Pentagon UNLEASHES $1.4 Billion China Crusher

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Trump administration delivers a crushing blow to China’s stranglehold on critical minerals as Korea Zinc announces a massive $7.4 billion smelter partnership that will bring America’s first zinc facility since the 1970s to Tennessee.

Story Highlights

Korea Zinc partners with U.S. Defense and Commerce departments for $7.4 billion Tennessee smelter producing 11 critical minerals
Project creates 750 high-paying jobs while ending 50 years of U.S. smelting decline and Chinese dependency
Trump administration invests $1.4 billion directly through Defense Department to secure national security supply chains
Facility will produce critical materials for defense, semiconductors, and AI applications starting in 2029

Trump Administration Secures Critical Mineral Independence

Korea Zinc signed a conditional commitment with the U.S. Departments of Defense and Commerce on December 15, 2025, establishing America’s first primary zinc smelter since the 1970s in Clarksville, Tennessee. The $7.4 billion project represents a flagship achievement of Trump’s America First industrial policy, directly countering China’s dominance over critical mineral supply chains that threaten national security and economic independence.

Commerce Secretary Howard Lutnick called the partnership “transformational,” emphasizing its role in reducing dependence on foreign nations for materials essential to defense and technology sectors. The facility will produce 11 of the 13 U.S.-designated critical minerals alongside base metals like zinc, lead, and copper, directly supporting America’s defense industrial base and emerging technologies.

Defense Department Investment Signals Strategic Priority

The Pentagon’s $1.4 billion conditional investment through the Department of Defense demonstrates the Trump administration’s commitment to rebuilding America’s industrial capacity. Deputy Defense Secretary Steve Feinberg highlighted that this marks the first U.S. zinc smelter in nearly five decades, creating 750 direct jobs while unlocking critical minerals for defense applications that have been vulnerable to Chinese supply disruptions.

Korea Zinc will acquire the existing Nyrstar facility through Crucible JV LLC, a joint venture with JPMorgan Chase and U.S. government backing. The 650,000 square meter site in Montgomery and Smith Counties leverages Tennessee’s skilled workforce, low electricity costs, and proximity to idle mines rich in rare earth elements that ceased operations in 2023.

Economic Victory for Tennessee and National Security

Governor Bill Lee secured this investment during his Asia trip, building on earlier White House agreements reached December 14, 2025. The project represents a major economic victory for Tennessee families, bringing high-wage manufacturing jobs to the Tennessee Valley while strengthening America’s position in global supply chains critical to aerospace, defense, semiconductors, and electric vehicle production.

Senator Marsha Blackburn praised the deal as a significant win that bolsters national security through domestic rare earth production. The facility will begin site preparation in 2026, commence full construction in 2027, and start phased commercial operations in 2029, reversing decades of American industrial decline in critical mineral processing.

Breaking China’s Chokehold on Strategic Materials

This partnership directly addresses vulnerabilities exposed by China’s control over critical mineral processing, which has threatened American defense capabilities and technological advancement. Korea Zinc Chairman Yun B. Choi described the project as a “geostrategic victory” supporting Trump administration priorities, while ensuring preferred U.S. access to Korea Zinc’s South Korean production capacity.

Korea Zinc to build $7.4 billion Tennessee smelter backed by Trumphttps://t.co/Pm5Hdvu3Nw

— Insider Paper (@TheInsiderPaper) December 16, 2025

The integrated mine-to-metals facility will model Korea Zinc’s world-leading Onsan Smelter in Ulsan, bringing proven technology to American soil. This development represents exactly the kind of allied investment in American manufacturing that conservative voters demanded, strengthening both national security and economic independence from hostile foreign powers.