S.Korea, Canada to bolster key minerals supply partnership

South Korea and Canada will make close cooperation to strengthen their supply chains of critical minerals such as uranium and nickel, key materials to batteries and semiconductor chips.

South Korean President Yoon Suk Yeol and Canadian Prime Minister Justin Trudeau on Wednesday signed a memorandum of understanding on the strategic cooperation, which both countries hope to expand into other areas of security, culture, science and politics.

The agreement was announced after they held a summit meeting on the second day of Trudeau’s three-day state visit to its solo free trading partner in Asia.

The stable supply of critical minerals was at the core of their agenda items under comprehensive strategic partnership. They will closely cooperate to smelt, trade and recycle critical minerals.

In that regard, the two countries will launch high-level communication channels for economy and security.

“Canada is ready to strengthen our partnership with friends like (South) Korea on everything from critical minerals to high-tech innovation to clean energy solutions,” Trudeau said in a parliamentary speech ahead of the summit with Yoon.

The Wednesday agreement is expected to speed up Korean companies’ forays into Canada from eco-friendly vehicles to clean energy and submarines.

HD Hyundai Heavy Industries Co. is said to be in discussion to join Canada’s submarine replacement project worth $60 billion. 

BATTERIES

His trip to Seoul comes as Korean battery maker LG Energy Solution Ltd. is struggling with a political dispute in Canada over subsidies for its $4 billion plant under construction in Ontario, jointly with automaker Stellantis N.V.

South Korea’s National Assembly speaker Kim Jin-pyo asked the Canadian premier to help clear hurdles to South Korean battery makers’ investments in Canada, as well as supporting artificial intelligence companies venturing into the country.

Kim did not specify further.

LG Energy and Stellantis recently stopped construction at a $4 billion electric vehicle battery plant in Ontario, Canada amid a dispute between the country’s federal and provincial governments over financial aid to the facility.

The Canadian premier was expected to meet with LG Energy executives to discuss the issue, according to sources on Tuesday.

But it was not immediately known whether he held a meeting with LG’s senior officials, or is supposed to meet them before heading to Japan on Thursday for a G7 summit.

Canada is competing with the US to attract battery makers and EV manufacturers through tax benefits to create jobs.

Trudeau is the country’s first leader to make a state visit to South Korea in nine years as both countries celebrated the 60th anniversary of establishing diplomatic ties early this year.

Meanwhile, the two countries agreed to expand working holiday programs for the youth, tripling the number of their participants to 12,000.

Write to Hyeong-Ju Oh at ohj@hankyung.com
Yeonhee Kim edited this article