Trump secures deal with Korea Zinc to build rare earths processing facility in Tennessee — facility expected to have annual output of 540,000 tons of gallium, germanium, indium, and other resources

U.S. Commerce Secretary Howard Lutnick has released a statement praising U.S. President Donald Trump for securing a deal that will see a critical minerals processing facility built in the United States. According to the X post, Korea Zinc will build the facility in Tennessee, which will have an annual output capacity of 540,000 tons of various materials, including gallium, germanium, indium, and other resources that are crucial for Washington’s push to bring back semiconductor manufacturing within its borders.

The U.S. is mostly dependent on China for its rare earth materials, especially as the East Asian nation supplies the majority of both raw and processed resources across the globe. However, the rivalry between the two powers has highlighted the United States’ vulnerability to decisions made in Beijing, especially as its export controls in retaliation to Trump’s tariffs have impacted the semiconductor industry. While China has eased some of its restrictions and have started issuing export licenses, the White House knows that it remains at the mercy of its rival.

Because of this, the U.S. is keen on developing its own sources for rare earth minerals. Despite being called rare earths, these minerals are actually abundant in the Earth’s crust. However, their concentration is usually pretty low, meaning they’re often not economically viable to extract unless mined alongside other materials that have higher levels. But because China has invested heavily in the mining and processing of these elements, it’s able to dominate the industry today, supplying nearly 90% of the processed and refined rare earths in the world while everyone else plays catch-up.

Aside from this announced investment, Trump is also considering allocating $2 billion of the CHIPS Act funds to bolster its critical mineral supply chain. These moves will help ensure that the U.S. will always have its own supply of these resources. These materials are used beyond chips and semiconductors — they’re also needed for defense systems, jet engines, satellites, and other forms of advanced manufacturing.

Besides rare earths, the U.S. is also looking for lithium, which is the current basis of modern battery technology. A $1.5 trillion deposit has been found on the Nevada – Oregon border, which should be enough to supply the country’s battery needs for the next several decades. Much like how oil became a strategic asset in the 20th century, these minerals are now one of the major resources that countries are fighting for to gain access to, as they serve as the backbone for advanced technology.

Follow Tom’s Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.