Canada and Korea sign MOU for more trade, including cars and minerals – National
Canada and South Korea have taken new steps to strengthen trade relations that are expected to strengthen several industrial sectors in Canada, including automotive and precious metals.
This comes amid a global trade war and US tariffs, which have impacted Canada’s economic growth and job market, forcing the federal government to seek more trade authorities and work to remove trade barriers between states to reduce dependence on the US.
On Wednesday, Canadian Industry Minister Melanie Joly met in Ottawa with her counterparts from the Republic of Korea and signed a memorandum of understanding (MOU) between the two countries.
Details of the agreement were revealed in a press release, which includes establishing a Canada-Korea Industrial Cooperation Committee to work together on what it calls “future mobility.”
Areas the committee will focus on, according to the release, include creating a Korean car manufacturing facility in Canada, with the possibility of producing electric cars among the investments, although no specific amounts were mentioned.
Artificial Intelligence was also one of the “strategic sectors” mentioned as part of the agreement, but no further details were given.
In addition to the auto manufacturing sector, the release says the agreement means continued cooperation with South Korea in Canada’s battery industry. This means battery production, material processing and refining, and mineral processing and recycling.
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Canada may also increase some exports to South Korea as part of the deal, according to Tim Hodgson, Canada’s minister of energy and natural resources, who was quoted in a release as saying the MOU says “we are diversifying our exports,” but no other details were provided.
“This memorandum of understanding demonstrates Canada’s strategic approach to building a secure, competitive and sustainable energy future,” Hodgson said in the release.
“Canada and the Republic of Korea are trusted partners, and by deepening cooperation in essential minerals, clean energy technology and energy security, we are diversifying our exports and strengthening resilience on both sides of the Pacific.”
Precious minerals are one of the important economic projects of national interest defined under Ottawa’s 2025 budget, and Canada’s greatness in minerals such as nickel, cobalt, graphite and lithium, required for the production of batteries, energy storage, wind turbines and many other applications as part of the transition to green energy.
According to the International Energy Agency, the global shift away from the use of fossil fuels means that demand for precious minerals could increase sixfold by 2040.
The release says that by working with South Korean partners, Canada will “strengthen the automotive supply chain and improve cooperation in key mineral supply chains, clean energy transitions and energy security.”
It adds that through this partnership, Canada will “create opportunities and good-paying jobs for Canadians,” although no other details were given on the number or types of jobs that could be created.
“Canada is an automotive nation and is home to a world-class workforce, innovation and some of the best automobiles produced anywhere in the world. This new memorandum of understanding with Korea strengthens that legacy and positions Canada to lead the next generation of automotive excellence,” Joly said in the release.
“By deepening collaboration on EV and hydrogen mobility, expanding battery and precious metals synergies, and attracting high-value investments to Canadian communities, this agreement will grow our automotive sector, create great jobs and strengthen Canada’s position as a global leader in future-proofing vehicles.”
No details on the companies involved were provided, but some of the world’s biggest automakers based in South Korea include Hyundai Motor Group, which is also behind the Kia and Genesis brands.
– By file from Global News’ Bryan Mullan.
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