With U.S.–South Korea tariff negotiations nearing a key deadline, Korea Zinc’s (KS: 010130) potential investment in a U.S. non-ferrous metal smelter is emerging as a central issue. The move is part of a broader strategy by Seoul to align with Washington’s push to secure critical mineral supply chains and reduce dependence on China.
Korea Zinc, the world’s largest non-ferrous smelting company, is reportedly considering a 1 to 2 trillion won investment to build a U.S.-based facility. The plant would process critical minerals such as nickel, cobalt, and manganese, sourced from the seabed through a partnership with The Metals Company (NASDAQ: TMC). In June 2025, Korea Zinc acquired a 5% stake in TMC for $85 million. TMC is developing one of the first commercial seabed mining operations targeting polymetallic nodules in the Eastern Pacific.
The goal is to ship these nodules to the U.S. for processing, helping to establish a reliable domestic supply of battery metals. This aligns closely with a recent executive order by U.S. President Donald Trump, which supports offshore mineral extraction and aims to reduce China’s influence in global mineral markets.
On July 30, a South Korean government official stated, “The two countries are continuing working-level discussions regarding Korea Zinc’s plans to build a non-ferrous metal smelter. Their investment may be included in the final package for the last tariff negotiation.” South Korea’s move is believed to reflect Japan and the EU’s involvement in the U.S.-led “supply chain alliance,” as per their agreements with Washington.
If Korea Zinc’s investment is included in the final agreement, it would not only support U.S. mineral independence but also mark a significant shift in the role of seabed resources in global trade policy. The outcome may redefine how trade deals are shaped, less by tariffs alone and more by strategic alignment in critical sectors.
