Canada and the Republic of Korea formalized an agreement this week to bolster industrial cooperation across strategic sectors, notably automotive manufacturing, critical minerals, and artificial intelligence. Ministers from both nations signed a Memorandum of Understanding (MOU) establishing the Canada–Korea Industrial Cooperation Committee, according to a statement from Innovation, Science and Economic Development Canada.
This MOU deepens the existing Comprehensive Strategic Partnership between the two nations, emphasizing economic prosperity and supply chain resilience across the Pacific. A key component involves establishing a forum dedicated to future mobility collaboration, signaling intent to advance Korean automotive industrial presence within Canada, particularly concerning domestic EV manufacturing.
Minister of Trade, Industry and Resources Jung-Kwan Kim and his Canadian counterpart, Minister of Industry Mélanie Joly, finalized the agreement following discussions with a high-level Korean delegation led by Presidential Special Envoy Hoon-Sik Kang. The collaboration directly targets reinforcing Canada’s battery supply chain through increased investment in materials processing, refinement, and recycling of domestic critical minerals.
South Korean firms have already committed billions of dollars toward Canada's battery ecosystem since 2020, supporting approximately 250 companies involved in battery production and component supply. Canada views its reserves of critical minerals and its existing automotive manufacturing base as essential assets for the global clean energy transition, according to Minister of Energy and National Resources Tim Hodgson.
Bilateral merchandise trade reached $24.5 billion in 2024, positioning South Korea as Canada's seventh-largest trading partner under the framework of the 2015 Canada-Korea Free Trade Agreement. The Canadian automotive sector contributed $16.8 billion to national GDP in 2024, underscoring its economic significance.
Minister of International Trade Maninder Sidhu announced plans to lead a Team Canada Trade Mission to the Republic of Korea this spring, aiming to capitalize on the momentum generated by the new industrial framework. This strategic outreach seeks to attract further long-term investment into Canadian manufacturing capacities.
Geopolitically, the agreement signals a concerted effort by Ottawa to diversify its economic partnerships and secure reliable access to resources vital for the energy transition, mitigating risks associated with over-reliance on other major global supply chains. The focus on future mobility and clean energy technologies underscores shared strategic alignment between the two democratic partners.
