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Canada and South Korea Sign MOU to Expand Auto and Battery Manufacturing

The non-binding pact signals Ottawa’s use of industrial promises in weighing a long-term submarine procurement.

Overview

  • Industry Minister Mélanie Joly and South Korea’s Trade Minister Jung-Kwan Kim signed the agreement in Ottawa earlier this week, creating a Canada–Korea Industrial Cooperation Committee.
  • The framework outlines cooperation to build a Korean automotive footprint in Canada, pursue EV manufacturing, expand battery production and supply chains, and develop hydrogen-powered commercial vehicles.
  • Ottawa emphasized investment across battery materials and critical minerals, noting Korean firms have already committed billions to Canada’s emerging battery ecosystem.
  • The accord follows Canada’s request that submarine bidders facilitate concrete auto-sector commitments, with South Korea’s Hanwha and a GermanNorwegian team led by TKMS still in contention.
  • The MOU carries no binding factory pledge from Hyundai, and any submarine deal would be a government-to-government contract valued in the tens of billions over a multi-decade partnership.