Co-Chair of the Critical Materials Caucus Submits Official Letter to the State Department Expressing Concerns Over the Potential Acquisition of Korea Zinc
SEOUL, South Korea--(BUSINESS WIRE)--Rep. Eric Swalwell, Co-Chair of the Congressional Critical Materials Caucus, has sent an official letter to Jose Fernandez, Undersecretary of State for Economic Growth, Energy, and the Environment, expressing concerns about the takeover battle over Korea Zinc (KRX:010130) and urging active involvement from the U.S. Department of State.
“Korea Zinc has maintained its position as a global leader in allied efforts to expand and diversify the supply of critical minerals and insulate these supply chains from PRC (People’s Republic of China) leverage.”
In the letter, Rep. Swalwell stated, "Korea Zinc has maintained its position as a global leader in allied efforts to expand and diversify the supply of critical minerals and insulate these supply chains from PRC (People’s Republic of China) leverage." He highlighted that Korea Zinc operates one of the largest smelters of zinc in the world, which can also produce silver and copper, and emphasized the importance of its advanced nickel smelting technology. He particularly emphasized that Korea Zinc’s advanced nickel refining plant in Ulsan, Korea, will deploy an industry leading refining technology allowing major battery manufacturers in Korea, and across the globe, to have a reliable supply chain, free from Chinese materials and technology.
This letter makes evident the recognition of Korea Zinc’s importance in building a China-free supply chain for critical materials.
After establishing the strategic importance of Korea Zinc, Swalwell pointed out the various negative consequences that could arise if MBK Partners were to gain management control of the company.
He cited several examples to explain that MBK Partners is a private equity firm active in Northeast Asia with significant connections to China. Furthermore, he expressed concerns that MBK Partners' track record raises the possibility of China becoming involved in Korea Zinc’s operations, potentially leading to the transfer of critical technology and undermining the joint U.S.-Korea efforts to inhibit Chinese influence.
The congressman also emphasized that Korea Zinc’s technology for secondary battery materials, which was designated as a core national technology and a national high-tech strategic technology in Korea, is essential for maintaining the competitiveness of Korea's battery industry against heavily subsidized Chinese companies. He stressed the need for government-level measures to protect this technology.
He also called to attention the recent transfer of the Minerals Security Partnership (MSP) chairmanship from the U.S. to Korea, stating that China's aggressive export controls on critical materials such as gallium, germanium, antimony, and graphite further amplify the importance of U.S.-Korea collaborations and thorough transaction reviews to strengthen supply chains.
Swalwell also called for active involvement from the U.S. government regarding the Korea Zinc situation. He emphasized that decisions surrounding the issue should consider its impact on the national security and economies of both countries and urged the U.S. government to closely collaborate with Korea’s Ministry of Foreign Affairs and Ministry of Trade, Industry, and Energy.
Meanwhile, the Critical Materials Caucus is a coalition of U.S. House members formed to ensure stable supply chains for critical minerals. The group focuses on strengthening global resource security and enhancing economic resilience.
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