On January 27 in Ottawa, South Korea’s Minister of Trade, Industry and Resources Kim Jung-kwan and Canada’s Minister of Industry Mélanie Joly signed a memorandum of understanding to encourage investment by Korean automotive companies in Canada. The agreement establishes a framework for cooperation across multiple segments of the sector, including the manufacturing of traditional automobiles, electric vehicles (EVs), batteries and hydrogen-powered vehicles.
Under the terms of the memorandum, the two governments will work together to expand the presence of Korean automakers in Canada, explore opportunities for local EV production and strengthen battery manufacturing capabilities. Cooperation will span the entire battery supply chain—from key mineral mining and refining to cell production and research and development. The agreement also calls for collaboration on hydrogen commercial vehicles and the development of reliable hydrogen supply chains. Hyundai Motor Group, which has spearheaded discussions on automotive cooperation between the two countries, proposed the creation of a Canadian hydrogen ecosystem to support future commercial rollout.
The signing coincides with South Korea’s ongoing bid for Canada’s next-generation patrol submarine procurement project, valued at an estimated 60 trillion won when construction and maintenance are included. Under this initiative, Canada plans to acquire twelve 3,000-ton–class submarines to replace its existing fleet of four Victoria-class vessels. Hanwha Ocean, the leading competitor in the submarine tender, has committed 345 million Canadian dollars (approximately 360 billion won) to build a steel plant in partnership with Algoma Steel, Canada’s largest steel manufacturer, and to secure Canadian-sourced steel for submarine construction and maintenance.
Defense economics expert Karl Skogstad of Lakehead University praised Hanwha Ocean’s dual approach of investing in domestic steel production and procurement, noting that it underscores the company’s dedication to securing the submarine contract.
Source: Business Korea
