Korea Zinc Targets Rare Earth Extraction from US Waste

Korea Zinc Company, Ltd. is in active discussions with major technology firms in the United States to establish a recycling pipeline for data center waste. The initiative aims to extract rare earth elements from discarded hardware, aligning with a broader American strategy to reduce reliance on mineral supplies from China. Beyond data centers, the company intends to process waste from batteries and solar panels to recover metals required for electronics, electric vehicles, energy infrastructure, and defense systems.

Chairman Yun B. Choi stated that the company has spent two years researching extraction technologies. This move is designed to provide the American market with a domestic source of rare earths, as China currently accounts for nearly 90% of global production and has increasingly used export restrictions as leverage in trade disputes.

The U.S. government has been continuously advocating for recycling critical minerals, because they are aware that a significant amount of such minerals from waste was exported to China via several countries.

While Choi did not name the specific tech firms involved or disclose the total investment, he confirmed that Korea Zinc has already acquired an electronic waste recycler and a scrap metal trader. These acquisitions, paired with new mineral separation partnerships, are intended to create a comprehensive processing ecosystem.

If we can provide a solution or a process to extract, refine, and provide new rare earths in the United States, I think the business value would be significant.

The company, headquartered in South Korea, is also moving forward with a $7.4 billion smelter project in Tennessee. This facility will be the first of its kind built in the American market since the 1970s and is receiving significant financial support from the federal government. Once operational, the smelter is expected to produce 540,000 metric tons of non-ferrous metals annually, including 11 minerals classified as critical for national security, such as antimony, gallium, and germanium.

Korea Zinc reported a record operating profit of 1.2 trillion won ($813 million) for the previous fiscal year. This financial performance was bolstered by a surge in antimony prices, which reached $25 per pound in 2025—more than double the price seen in 2024. The metal is highly valued for its role in nuclear weapons production and other military applications.

After China's export control on rare earths in April 2025, the atmosphere in the U.S. regarding critical minerals has changed significantly.

The Tennessee project is expected to yield profit margins between 17% and 19%, surpassing the margins of the company’s existing Korean refineries. Construction is scheduled to commence in early 2027, with the facility projected to reach its break-even point within a year of starting operations in 2030.

As joint investor, the U.S. is providing support.