Korea Zinc’s Role Grows as U.S.-China Trade Tensions Trigger Export Controls on Rare Metals
As U.S.-China trade tensions escalate into export controls on rare metals, Korea Zinc's role in maintaining supply chain stability for critical minerals has become increasingly significant. On February 4, China announced immediate export controls on five key metals—tungsten, molybdenum, indium, bismuth, and tellurium—just minutes after U.S. President Donald Trump's additional 10% tariff on Chinese goods took effect.
Korea Zinc, South Korea's sole producer of indium, bismuth, and tellurium, now plays a crucial role in addressing supply chain concerns. These three metals are among those targeted by China's export controls, making Korea Zinc's production capabilities vital.
Korea Zinc annually produces 150 tons of indium, representing approximately 11% of the global demand of 1,400 tons. Indium is widely used in alloys such as indium tin oxide (ITO) for monitors, touchscreens, solar panels, and LEDs. The company also produces 900-1,000 tons of bismuth and 100-200 tons of tellurium each year.
Beyond these rare metals, Korea Zinc produces around 120 million tons of more than 10 non-ferrous metals annually. The company leverages proprietary technology to extract these rare metals during the smelting process of zinc and lead concentrates sourced globally.
A Korea Zinc spokesperson highlighted the company's strategic role: “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.”
Korea Zinc demonstrated its capacity to maintain supply chain stability during China's antimony export controls in September 2024, ensuring a stable domestic supply through advanced production capabilities.
The company now aims to increase the production of indium, bismuth, and tellurium to reduce South Korea's dependency on Chinese imports, which currently stand at 92.8% for indium, 95.8% for bismuth, and 61.2% for tellurium.
