The Defense Department is getting a 40% stake in a $7.4 billion mineral smelter to be built in Tennessee in partnership with Korea Zinc, Reuters reported Monday.
The critical minerals smelting and processing facility could produce 540,000 tons of materials in the U.S. per year, according to the U.S. Commerce Department.
The deal comes as the U.S. seeks to form critical mineral partnerships that are not dependent on China.
Reuters said that Korea Zinc will sell new shares worth $1.9 billion to a joint venture controlled by the U.S. government and unnamed U.S.-based strategic investors. The government and investors would then control 10% of Korea Zinc, according to the news outlet.
“The United States hasn’t built a large-scale zinc smelter like this since the 1970s — a fact that reflects how decades of poor leadership imperiled our national and economic security,” White House spokesman Kush Desai said in a statement to CNBC on Monday.
