Korea Zinc to form joint venture with US firm to produce rare earths

SEOUL, January 13 (AJP) - Korea Zinc said Tuesday it has signed a strategic partnership with U.S.-based Alta Resource Technologies to produce rare earths.

The partnership focuses on recycling and refining end-of-life permanent magnets into high-purity rare-earth oxides, materials used in electric vehicles, wind turbines and defense systems, Korea Zinc said in a press release.

Under the agreement, the two companies will establish a joint venture in the United States and build production facilities at an existing site operated by a U.S. subsidiary of Korea Zinc. The joint venture aims to begin commercial operations in 2027.

The initial phase of the project is designed to process and produce about 100 tons a year of high-purity rare-earth oxides, with plans to expand capacity in stages. Targeted products include neodymium, praseodymium, dysprosium and terbium oxides, which are key inputs for high-performance permanent magnets.

The deal reflects growing concerns over economic security and supply-chain concentration. More than 90 percent of global rare-earth refining capacity is currently located in China, a dominance that has left manufacturers vulnerable to export controls, production disruptions and volatile prices.

Korea Zinc said the goal is to establish a stable supply of rare-earth oxides for customers in South Korea and the United States, supporting industries such as electric-vehicle motors, renewable energy equipment and defense technologies.

Korea Zinc is currently pursuing plans to build an integrated smelter in the United States to meet rapidly rising demand for critical minerals.

Alta Resource Technologies has developed advanced biochemical separation technology for rare earths and recently completed a Series A fundraising round. Through the partnership with Korea Zinc, the company plans to scale a U.S.-based business model focused on producing rare-earth oxides from secondary resources available domestically, according to Korea Zinc.

Choi Yun Beom, chairman of Korea Zinc, said the partnership marks “an important milestone” as the strategic value of rare earths continues to rise.

He said the company aims to supply rare-earth materials reliably to advanced-technology firms in South Korea and the United States while positioning itself as a trusted supply-chain partner.