Korea Zinc Explores U.S. Rare Earth Recycling from Decommissioned Data Center Hardware
March 13, 2026
In a strategic move to address critical supply chain vulnerabilities, South Korean smelting giant Korea Zinc is in advanced discussions with major U.S. technology companies. The talks center on a pioneering initiative to extract and recycle rare earth minerals from end-of-life data center equipment, according to a Reuters interview with the company's chairman.
The initiative gains urgency from the current global reliance on China, which accounts for approximately 90% of the world's supply of these essential elements. Rare earths are vital components in manufacturing electronics for data centers, aerospace, and defense systems. Recent geopolitical tensions and China's imposition of export controls on these minerals, which took effect last year, have threatened to disrupt technology supply chains worldwide, prompting a search for secure, alternative sources.
Korea Zinc Chairman Yun B. Choi revealed the company has been quietly developing the necessary extraction technologies for the past two years. "The U.S. government has been continuously advocating for recycling critical minerals, because they are aware that a significant amount of such minerals from waste was exported to China via several countries," Choi stated. He emphasized the significant business potential, adding, "If we can provide a solution or a process to extract, refine, and provide new rare earths in the United States, I think the business value would be significant."
While Choi did not name the potential U.S. partners, he outlined Korea Zinc's preparatory steps, which include investments in recycling infrastructure, the acquisition of an electronic waste recycler and scrap metal trader, and a partnership with a firm specializing in mineral separation technology. This effort aligns with the company's broader U.S. expansion, notably a planned $7.4 billion smelter in Tennessee announced in December 2025. The facility, receiving substantial U.S. government funding, is designed to produce 540,000 tons of non-ferrous metals annually, including critical minerals like antimony, gallium, and germanium.
The potential partnership signals a growing trend of cross-industry collaboration to build a circular economy for critical materials. Successfully commercializing rare earth recycling from e-waste could reduce the tech industry's strategic dependence on primary mineral imports, enhance supply chain resilience, and address growing environmental and sustainability concerns associated with mining and electronic waste.
Source: datacenterdynamics
