U.S. Secretary of Commerce Howard Rutnik. UPI Yonhap News

U.S. Secretary of Commerce Howard Rutnik welcomed the contract between KorAm and the Donald Trump administration to build a large-scale smelter in Tennessee, calling it "a big win for America."

In a statement posted on his X (formerly Twitter) account on the 15th (local time), Secretary Rutnik stated, "President Trump has signed transformative critical mineral contracts that strengthen our national security, rebuild our industrial base, and end our reliance on foreign supply chains."

He added, "Today, we are announcing a significant investment with KorAm to build a state-of-the-art critical mineral smelter and processing facility in Tennessee, which will produce 540,000 tons of essential materials annually here in the United States."

Secretary Rutnik emphasized that these minerals power the most critical technologies of the future, including defense systems, semiconductors, artificial intelligence (AI), quantum computing, automobiles, data centers, and advanced manufacturing. He stated, "Gallium, germanium, indium, antimony, copper, silver, gold, zinc, and more will all be produced on American soil, supporting everything from fighter jets and satellites to semiconductor manufacturing plants and power grids."

Secretary Rutnik also said, "We are not stopping here. Starting in 2026, the United States will have priority access to KorAm's expanded global production, putting American security and manufacturing first."

He continued, "This is how we win. We make it here, secure our supply chains, create great jobs, and maintain America's position as an industrial and technological leader." He concluded by congratulating President Trump on "another huge victory for America."

Previously, KorAm held a board meeting on the 15th, Korean time, to approve the investment plan for the smelter construction. In a subsequent press release, the company announced, "We have signed a strategic partnership with the U.S. Department of Defense and the Department of Commerce and will jointly invest in the construction of a large-scale smelter spanning 650,000 square meters in Clarksville, Tennessee."

The estimated investment for this project, named 'U.S. Smelter,' totals approximately 10.95 trillion Korean won (about $7.432 billion).

Under the U.S. CHIPS and Science Act, the U.S. Department of Commerce is expected to provide subsidies of up to approximately 300 billion Korean won (about $210 million).