Korea Zinc to Invest 1.5 Trillion Won in Domestic Operations Through 2029

Korea Zinc (010130.KS), the world's largest zinc smelter, announced Wednesday that it will invest approximately 1.5 trillion won ($1.1 billion) in domestic operations including Ulsan through 2029.

The company plans to deploy capital across research and development, strategic minerals, resource circulation, environmental infrastructure, and safety systems as part of its role as Korea's hub for strategic minerals and non-ferrous metals. Through these investments, Korea Zinc aims to establish a foundation for self-sufficiency in materials and critical minerals while expanding its role as a global supply chain hub.

Korea Zinc will first invest in facilities to expand domestic production of strategic minerals. The company will invest approximately 140 billion won to construct a new germanium plant and about 55.7 billion won to build a gallium recovery process. The target is to produce 12 tons of germanium and 15 tons of gallium annually starting in 2028, which is expected to generate gross profit of approximately 60 billion won per year.

For bismuth, another strategic mineral, Korea Zinc will invest 30 billion won through 2026 to expand its production facility. Upon completion, bismuth production capacity will increase by 500 tons to 1,500 tons annually. According to the U.S. Geological Survey, Korean-sourced bismuth accounted for 23% of U.S. bismuth imports from 2020 to 2023, second only to China at 67%.

Beyond simple investment, the company is actively pursuing R&D investment to maintain its differentiation and technological edge as a global leader in non-ferrous metals. To support this, Korea Zinc plans to establish a new R&D center in Songdo, Incheon, to foster future growth drivers. The Songdo R&D center, with an investment of approximately 150 billion won through March 2028, will break ground in the first half of 2026. The center is expected to serve as a base for core technology research needed for the Troika Drive strategy, economic security, and supply chain stabilization across materials, recycling, energy, artificial intelligence, and robotics.

Investment in resource circulation is also underway. Since late 2022, Korea Zinc has invested more than 120 billion won to develop a copper recycling process. This process treats secondary materials including waste printed circuit board raw materials procured from Pedal Point in the United States, copper scrap, and wire rod in pyrometallurgical furnaces. After trial operations in 2026, full-scale operation will enable additional production of 35,000 tons of electrolytic copper annually.

The company will also invest approximately 50 billion won through 2027 to expand its lead-acid battery shredding facility. The expanded facility will be capable of shredding 200,000 tons of lead-acid batteries annually, significantly strengthening the company's capacity to produce recycled lead from waste batteries.

Investment in the "all-in-one nickel smelter" to enhance competitiveness in the secondary battery materials business is also progressing smoothly. This project, with investment of approximately 520 billion won through 2026, will begin commercial operations in 2027 and produce 42,600 tons of nickel for secondary batteries annually.

Korea Zinc will also invest more than 130 billion won through 2027 to expand its oxygen plant. Upon commercial operation, the facility will produce an additional 50,000 Nm³/hr of oxygen and 30,000 Nm³/hr of nitrogen required for operations. This will increase the Onsan smelter's total oxygen plant capacity to 130,000 Nm³/hr of oxygen and 150,000 Nm³/hr of nitrogen.

The company also plans to increase environmental investments. Since last year, Korea Zinc has invested more than 50 billion won in constructing a proprietary landfill facility. The facility, targeting trial operations in 2026, is expected to contribute to more efficient management of waste generated from smelting processes.

Safety investments are also being accelerated. Korea Zinc plans to invest more than 180 billion won to build an integrated control center spanning one basement level and eight above-ground floors. The center will enable real-time monitoring of all operations at the Onsan smelter and establish a system for rapid response and control in crisis situations.

"We are actively pursuing domestic investment as a two-track approach alongside our U.S. smelter construction investment, which is being promoted to diversify supply chains and strengthen Korea-U.S. economic security cooperation," a Korea Zinc official said. "We will steadfastly execute domestic investment to contribute to revitalizing the national economy, secure future growth drivers, and help Korea become a global mecca for non-ferrous metal smelting."