The Donald Trump administration’s shift away from Chinese dependence in mineral resources has opened new opportunities for advanced South Korean companies. These firms are emerging as strategic partners in the U.S. effort to establish an independent supply chain, with expectations of significant benefits.
Notable players like Korea Zinc and LS MnM have already established a foothold in the U.S. market, operating local refineries and branches.
Industry sources revealed on Wednesday that the U.S. government is launching a 3 billion USD mining project focused on critical mineral extraction. This initiative aims to bolster the mining and processing of minerals crucial for cutting-edge and defense industries, including battery materials, rare earth elements, scandium, copper, and graphite. The move is designed to reduce reliance on China in sectors vital to national security.
While rich in mineral resources, the U.S. lags behind China in refining and processing capabilities. This gap has sparked interest in South Korean firms with advanced technologies, viewed as potential partners in developing the U.S. critical mineral supply chain.
Korea Zinc stands out as a prime beneficiary of this mining initiative. The company’s Onsan refinery in Ulsan boasts decades of expertise in processing complex, low-grade materials and recovering rare and precious metals from refining byproducts. Their capability extends to extracting various metals from diverse raw materials and recycling refining byproducts and scrap.
In collaboration with the U.S. government, Korea Zinc is spearheading the 7.4 billion USD Crucible project to construct an integrated refinery in Tennessee by 2029. The company has already launched Crucible Zinc, leveraging its existing U.S. zinc refinery and associated mines.
The Crucible project aims to produce 11 of the 60 critical minerals designated by the U.S. government, including zinc, lead, copper, silver, antimony, indium, bismuth, tellurium, palladium, gallium, and germanium. Additionally, it will produce semiconductor-grade sulfuric acid.
Korea Zinc’s multi-metal competitiveness, demonstrated by its ability to produce and recover various critical minerals through a single integrated process, has garnered significant attention. The Crucible facility offers the U.S. the advantage of securing multiple critical minerals simultaneously from one integrated refinery.
U.S. Secretary of Commerce Howard Lutnick highlighted the importance of establishing a domestic critical mineral supply chain, specifically citing Korea Zinc’s integrated refinery project as a prime example.
A recent report by the Center for Strategic and International Studies (CSIS) titled, Export Powerhouse or Ecosystem Powerhouse, praised Korea Zinc’s Crucible project as a model of U.S.-South Korea collaboration in building a critical mineral ecosystem.
The Crucible project could serve as a springboard for South Korea to expand its supply chain in key industries like semiconductors and batteries, extending to critical minerals and refining processes.
Under the One Big Beautiful Bill Act (OBBBA), the U.S. requires battery material companies to meet Non-Prohibited Foreign Entity (Non-PFE) standards to qualify for Advanced Manufacturing Production Credit (AMPC) benefits. Prohibited Foreign Entities (PFEs) include foreign corporations or government-controlled entities that raise concerns under U.S. law. For battery material firms eyeing the U.S. market, establishing a Non-PFE supply chain is crucial.
Experts believe that integrating South Korean companies’ advanced refining and processing capabilities with U.S. mineral resources could significantly stabilize the supply chain.
An industry insider noted that while the U.S. is rich in mineral resources, it lacks the refining and processing capabilities needed for producing materials used in cutting-edge industries. Collaboration with allied companies possessing optimal technologies is essential. South Korean firms stand to benefit by helping establish supply chains that sidestep countries or entities of concern to the U.S. government.
As the U.S. looks to allied nations to replace Chinese supplies, LS MnM, South Korea’s largest copper producer, is also gaining attention. The company has built its success on non-ferrous metal businesses, including copper, precious metals, and sulfuric acid. Recently, it has been diversifying into battery materials like nickel sulfate and semiconductor materials such as PSA for future growth.
Copper has become indispensable across advanced industries, including electric vehicles, artificial intelligence (AI) data centers, power grid expansion, and defense. Currently, the U.S. operates only two copper refineries: Kennecott in Utah and Miami in Lizzona.
Despite mining over 850,000 to 1 million tons of copper annually, the U.S. lacks sufficient domestic refining capacity. Consequently, about 48% of mined copper ore is exported to countries like China, while high-purity refined copper is imported back.
This situation forces the U.S. to send a portion of its domestically mined copper to China, which controls over half of the global copper refining capacity. Strict environmental regulations, complex permitting processes, and high investment and operational costs in the U.S. make expanding refinery capacity challenging.
To secure a steady supply of recycling materials from North America, LS MnM has established a U.S. branch in California.
LS MnM’s copper has achieved Grade 1 registration on COMEX, one of the world’s top three non-ferrous metal exchanges, solidifying its position in international markets.
An industry expert commented that with only two operational refineries, U.S. refining capacity is limited, resulting in significant copper exports and refined copper imports. As the Trump administration’s mining project advances, some of the volume currently destined for China may shift to allied countries, potentially benefiting South Korean companies.