Canada and South Korea have taken latest steps to strengthen trade ties which are expected to spice up several industrial sectors in Canada, including automotive and significant minerals.
This comes amid the global trade war and U.S. tariffs, which have impacted Canada’s economic growth and job market, forcing the federal government to hunt alternative trading partners and work to remove interprovincial trade barriers to cut back reliance on the U.S.
On Wednesday, Canada’s Industry Minister Melanie Joly met in Ottawa with counterparts from the Republic of Korea and signed a memorandum of understanding (MOU) between the 2 nations.
Details of the agreement were outlined in a press release, which incorporates establishing the Canada-Korea Industrial Cooperation Committee to work together on what it calls “future mobility.”
Areas the committee will deal with, based on the discharge, include making a footprint for Korean automotive production in Canada, with electric vehicle manufacturing opportunities among the many investments, although no specific amounts were mentioned.
Artificial intelligence was also one in all the “strategic sectors” mentioned as a part of the agreement, but no other details were provided.
Along with the auto manufacturing sector, the discharge says the agreement means further co-operation with South Korea on Canada’s battery supply chain. This implies battery production, materials processing and refinement, in addition to critical minerals processing and recycling.
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Canada may additionally be increasing some exports to South Korea as a part of this agreement, based on Tim Hodgson, Canada’s minister of energy and natural resources, who was quoted in the discharge saying the MOU means “we’re diversifying our exports,” but no other specifics were provided.
“This memorandum of understanding reflects Canada’s strategic approach to constructing a secure, competitive and sustainable energy future,” said Hodgson in the discharge.
“Canada and the Republic of Korea are trusted partners, and by deepening cooperation on critical minerals, clean energy technologies and energy security, we’re diversifying our exports and strengthening resilience on either side of the Pacific.”
Critical minerals are one in all the important thing economic projects of national interest outlined under Ottawa’s Budget 2025, with Canada’s vastness in minerals like nickel, cobalt, graphite and lithium, that are needed for battery production, energy storage, wind turbines and plenty of other applications as a part of the transition to green energy.
In keeping with the International Energy Agency, the worldwide transition away from fossil fuels means demand for critical minerals could increase as much as sixfold by 2040.
The discharge says by working with South Korean partners, Canada “will strengthen the automotive supply chain and enhance cooperation on critical mineral supply chains, clean energy transition and energy security.”
It adds that through this collaboration, Canada “will create opportunities and well-paying jobs for Canadians,” although no further details were provided on the number or sorts of jobs that might be created.
“Canada is an auto nation and residential to world-class staff, innovative innovation and a few of the perfect vehicles manufactured anywhere on the earth. This latest memorandum of understanding with Korea strengthens that legacy and positions Canada to guide in the subsequent generation of automotive excellence,” said Joly in the discharge.
“By deepening cooperation in EV and hydrogen mobility, expanding battery and significant mineral partnerships, and attracting high-value investment into Canadian communities, this agreement will grow our auto sector, create good jobs and reinforce Canada’s position as a world leader in future-ready vehicle manufacturing.”
No specifics on corporations involved were provided, but a few of the largest global automotive brands based in South Korea include Hyundai Motor Group, which can also be behind the Kia and Genesis brands.
— With a file from Global News’ Bryan Mullan.
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