Seoul, Dec 15 Korea Zinc and the US government are seeking to jointly invest around 10 trillion won ($6.8 billion) in the construction of a critical metals refinery in America's southeastern region, according to sources on Monday.
The plan involving an envisioned joint venture (JV) will be finalised at the Korea Zinc's board of directors meeting later in the day, the government and industry sources said, reports Yonhap news agency.
Washington is said to have pushed for the plant's construction and is expected to invest around 2 trillion won with U.S. defence firms in the JV with Korea Zinc Inc., according to the officials.
The two sides have tentatively decided to build the plant in a major city in the southeast region of the U.S. after reviewing 60 candidate locations, they added.
The upcoming refinery will serve as a U.S. foothold for the supply and production of critical metals, including antimony and germanium.
The plan comes as the U.S. government is making efforts to respond to Chinese export curbs on rare earths and critical metals.
It also comes after Korea Zinc Chairman Choi Yoon-beom announced in August plans for a strategic metals partnership with the U.S. during his visit to the country, following President Lee Jae Myung's first summit with U.S. President Donald Trump.
At the time, Korea Zinc signed a memorandum of understanding with the U.S. defence giant Lockheed Martin Inc. to invest around 140 billion won to build a germanium-producing facility in South Korea.
Meanwhile, South Korea will officially launch a rare metals cooperation centre in Mongolia this week to help the East Asian nation strengthen the industrial value of its rare earth metals reserve, Seoul's industry ministry said.
The centre was established as part of Seoul's official development assistance project for Mongolia.
It will study rare earth metals in the country, such as tungsten, molybdenum and lithium, and provide technical training in processing and refining, with an aim to help Mongolia add value to its rare metal resources, according to the ministry.
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