As global competition intensifies over rare earth supply chains, a national policy bank in South Korea has emphasized the need to leverage the country's advanced non-ferrous metal refining technology to establish a rare earth supply chain. Korea Zinc has emerged as a key example of utilizing this refining technology for urban mining and critical mineral supply chain development.
According to industry sources on September 6, the Korea Development Bank (KDB) Future Strategy Institute stated in its report titled 'Trends in Global Rare Earth Supply Chain Restructuring' that as certain countries tighten their rare earth export controls, refining technology and urban mining could provide a pathway for South Korea. The report highlights the strong technical link between urban mining and the extensive refining expertise and large-scale chemical processing technology accumulated in the non-ferrous metal industry.
Rare earth elements are essential strategic resources used in electric vehicles, offshore wind power, and advanced weapon systems such as missiles and fighter jets. Demand for rare earths is particularly concentrated in permanent magnets, with medium rare earths used in high-performance neodymium magnets being crucial in high-tech industries and defense sectors.
The KDB Future Strategy Institute identified 'advanced refining technology' and 'position as a demand source' as key competitive advantages that South Korea can leverage in the restructuring of its supply chain, given its lack of domestic rare earth resources.
South Korea possesses advanced refining technology and large-scale chemical process control capabilities accumulated through its non-ferrous metal industry. The report noted that recycling rare earths from urban mining has a high degree of technical connectivity with existing non-ferrous metal refining know-how and environmental processing infrastructure held by domestic companies.
Korea Zinc was highlighted as a representative company in this context. The institute stated, "Korea Zinc is actively working to secure a core partner position within the U.S.-led supply chain by developing rare earth recycling projects in the United States. It is also pursuing the establishment of a recycling plant to extract rare earths from waste permanent magnets and an integrated refining facility (Project Crucible) that produces 11 critical minerals in the U.S."
Building on its world-class non-ferrous metal refining competitiveness, Korea Zinc has continuously advanced its technology for recovering valuable metals from byproducts generated during the zinc and lead refining processes, as well as various secondary raw materials. Since the appointment of Chairman Choi Yoon-beom in 2022, the company has been actively promoting the 'Troika Drive,' focusing on renewable energy, secondary battery materials, and resource recycling, thereby expanding its resource recycling business utilizing secondary raw materials such as electronic waste.
Additionally, Korea Zinc is collaborating with the U.S. government and others to advance the construction of a large-scale integrated refining facility, Project Crucible, in Clarksville, Tennessee.
Korea Zinc is also accelerating its rare earth initiatives. From April this year until December 2030, the company is undertaking a project to develop core equipment for rare earth processing K-plants with support from the Ministry of Science and ICT. Prior to this, it developed technology to recover rare earth mixtures from waste motors, further enhancing its capabilities in rare earth separation and purification based on recycling technology.
A representative from Korea Zinc stated, "Based on decades of accumulated refining, recovery, and resource recycling technology, Korea Zinc will contribute to stabilizing the domestic critical mineral supply chain and will work to build a reliable critical mineral supply chain in cooperation with allied countries, including the United States."
Meanwhile, Korea Zinc will hold an extraordinary shareholders' meeting on September 9 to elect four independent auditors and one independent director. Amid a management dispute between Chairman Choi Yoon-beom and MBK Partners and Youngpoong, the outcome is expected to hinge on the votes of institutional, foreign, and minority shareholders regarding the continuation of Project Crucible and enhancing corporate value.
* This article has been translated by AI.
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