Korea Zinc Secures Critical Metals Supply Chain Amid Global Export Controls

SEOUL, South Korea , Feb. 6, 2025 /PRNewswire/ -- As U.S.-China trade tensions escalate into export controls on rare metals, Korea Zinc's (KRX:010130) role in maintaining supply chain stability for critical minerals has gained further strategic importance.

On February 4, China announced that it would be immediately implementing export controls on five key metals, namely tungsten, molybdenum, indium, bismuth, and tellurium, used for defense, clean energy and in several other industries, just minutes after President Donald Trump's additional 10% tariff on Chinese goods came into effect.

The rising tensions have highlighted the importance of establishing a more resilient supply chain for critical metals. Korea Zinc, as South Korea's sole producer of Indium, Bismuth, and Tellurium, which make up three of the five metals subject to the export controls, has found itself in a unique position to address these concerns.

Korea Zinc annually produces 150 tons of Indium, which makes up about 11% of the total global demand of 1,400 tons. Indium is highly sought after as it is used in a wide variety of alloys such as Indium tin oxide (ITO) for monitors and touchscreens, and other uses such as solar panels and LEDs. The smelter also annually produces 900-1,000 tons Bismuth, and 100-200 tons of Tellurium.

In addition to these three metals, Korea Zinc annually produces an approximate total of 120 million tons of 10+ non-ferrous metals. The company produces these rare metals by extracting them with its leading proprietary technology during the smelting process of zinc and lead concentrates sourced from global mines.

A Korea Zinc spokesperson stated, "Given that some critical metals are produced by only a few countries, Korea Zinc's role in establishing a more stable supply chain is crucial. We continue to provide stable supply to domestic industries despite global shortages. Korea Zinc has anticipated the importance of global rare metals and has consistently increased production."

The company demonstrated this capability during China's antimony export controls in September 2024, maintaining stable domestic supply through its advanced production capabilities.

Korea Zinc is currently looking to replicate this initiative by increasing production for Indium, Bismuth, and Tellurium in South Korea first, as current Chinese import dependency rates for them in South Korea are notably high. South Korea currently relies on 92.8%, 95.8%, and 61.2% of Indium, Bismuth, and Tellurium respectively.

About Korea Zinc:

Korea Zinc is a global leader in non-ferrous metal smelting and refining, processing materials from worldwide mines to produce essential metals and rare elements crucial for high-tech industries. The company's unique technological advantage in recovering valuable metals from production byproducts has established it as a world leader in the field.

SOURCE Korea Zinc