Korea Zinc to Build $7.4 Billion Smelting Facility in Tennessee Amid China's Silver Export Controls
Korea Zinc plans to invest $7.4 billion in a new smelting facility in Tennessee to produce 13 metals, including silver, in response to China's export controls that are impacting global supply chains. The facility aims to bolster U.S. production as demand for silver surges, particularly in industries like solar energy and AI. The U.S. government is expected to acquire a 10 percent stake in Korea Zinc, which currently accounts for 6 percent of global silver output.
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China's new export controls on silver are elevating Korea's role in the U.S. supply chain for critical minerals. Korea Zinc, the world's largest zinc smelter and a significant silver producer, is set to invest $7.4 billion to construct a smelting facility in Tennessee.
The facility will produce 13 metals, including silver, to meet U.S. demand. The U.S. government is anticipated to acquire a 10 percent stake in Korea Zinc, which produces about 2,000 tons of silver annually, representing 6 percent of global output.
Silver prices surged by 148 percent in 2025, driven by demand from industries such as solar energy and AI. With China's export controls taking effect on January 1, 2026, only select firms will be permitted to export silver, intensifying supply chain risks. Global silver output is approximately 25,000 to 27,000 tons annually, while demand is projected to rise significantly due to increasing industrial applications.
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