Canada and South Korea sign MOU to deepen cooperation in EVs, batteries and critical minerals

Senior ministers from Ottawa and Seoul formalized a memorandum intended to deepen industrial ties across electric vehicles, batteries, critical minerals and artificial intelligence. The agreement establishes a binational industrial committee and commits to a dedicated forum on future mobility to coordinate investment, technology transfer and standards alignment. Ottawa intends to use the partnership to encourage Korean manufacturers to locate more of their production and battery-related processing inside Canada, with an emphasis on cell production, materials refining and recycling capabilities. Seoul’s engagement signals a parallel goal of securing reliable upstream mineral sources while diversifying manufacturing footprints nearer to North American markets. The political rationale ties economic opportunity to resilience: by broadening supplier relationships and local processing, Canada seeks to reduce exposure to single-source dependencies for critical inputs. Private-sector interest from established Korean battery and steel firms gives the initiative momentum, but the memorandum itself does not constitute binding capital commitments. That legal reality means outcomes will hinge on implementation details: targeted public incentives, grid and transport upgrades, streamlined permitting, and workforce development. If those elements align with corporate timetables, the pact could move Canada from predominantly exporting raw ores toward capturing higher-margin stages of the EV value chain. Conversely, delays in approvals, technical scale-up challenges for cell manufacturing, or commodity price swings could blunt the plan’s impact. The agreement also has geopolitical resonance: it strengthens bilateral economic ties in a region where competition for battery metals and secure supply chains is intensifying. For communities and policymakers, the immediate task is to translate diplomatic language into credible projects, site decisions and timelines. The first concrete indicators to monitor will be formal investment announcements, the staffing and mandate of the new committee, and clear schedules for project permitting and production start-ups.