A member of the U.S. House of Representatives expressed concerns to the U.S. Department of State regarding the situation with Korea Zinc and noted the necessity of interest in establishing a supply chain outside of China.
On the 26th, Eric Swalwell, a U.S. House Representative, revealed through his social media platform X (formerly Twitter) an official letter he sent to Vice Minister José Fernández of the U.S. Department of State. Swalwell sent this letter in his capacity as co-chair of the 'Critical Minerals Caucus,' a congressional group that deals with critical minerals.
He mentioned Korea Zinc as a corporation that should collaborate to establish a supply chain outside of China, stating, "Korea Zinc is a global leader in diversifying the critical minerals supply chain." He added, "As the world's largest producer of zinc, as well as silver and copper, Korea Zinc will provide major battery manufacturers around the world with a stable supply chain while reducing dependence on China through its all-in-one nickel processing plant located in Ulsan."
He expressed concerns regarding Korea Zinc's management rights dispute with MBK Partners and Youngpoong. Swalwell noted that one of the main investors (Limited Partners) of MBK Partners is the China Investment Corporation (CIC), explaining, "According to the MBK website, the company's portfolio includes several China-based corporations." He highlighted that "considering MBK's investment performance, there is a possibility that a corporation backed by China and Chinese funds may participate in various transactions."
He further expressed concern that this could lead to the dismantling of a significant global player in the joint effort between South Korea and the U.S. to block the supply chain of critical minerals from China, as well as the transfer of technology to Chinese corporations. He added, "It should be discussed in a manner that considers various factors, including the shared national security interests of both countries."