Korea Zinc is joining forces with a U.S. rare earth company to secure technology for in-house production of rare earths, key materials for advanced industries. As China, the world’s largest producer, moves to fully enforce export controls on rare earths, Korea Zinc appears to be accelerating efforts to build a non-China supply chain in cooperation with the United States.

On the 13th, Korea Zinc announced that it had signed a strategic partnership with U.S. rare earth technology startup Alta Resources Technologies. This startup possesses so-called “precision mining” technology that separates rare earths using advanced biochemical technologies. The two companies plan to cooperate with the aim of producing rare earths by refining waste permanent magnets into high-purity rare earth oxides.

As a first step, the two companies will establish a joint venture in the United States. They then plan to build related facilities on the site of the U.S. business location currently operated by Pedalpoint, Korea Zinc’s U.S. subsidiary. The goal is to begin operations in 2027, securing annual processing and production capacity of 100 tonnes of high-purity rare earth oxides, and then gradually expanding production capacity.

Rare earths are a resource that China, which controls about 90% of global supply, is weaponizing amid U.S.-China hegemonic competition, making supply chain diversification an urgent task. Choi Yun-beom, Chairman of Korea Zinc, stated, “We will serve as a partner that supplies rare earths stably to advanced technology companies in both Korea and the United States.”

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