SEOUL, May 17 — South Korea’s Ministry of Commerce, Industry and Energy said Wednesday it has signed an agreement with Canada to expand economic ties and boost cooperation in key mineral supply chains.
The ministry signed a Memorandum of Understanding (MoU) with Canada’s Departments of Innovation, Science and Economic Development and Natural Resources on the sidelines of Canadian Prime Minister Justin Trudeau’s visit to Seoul.
“Canada is rich in key minerals and has a Free Trade Agreement (FTA) with the US, making it an important partner (for South Korea) in dealing with the US Inflation Reduction Act (IRA),” he said. Ministry in a statement.
The IRA offers a tax credit of up to $7,500 for electric vehicles (EVs) assembled in North America only. To qualify for $3,750 of the amount, the lead minerals in the vehicles must have been sourced or processed in the US or its trading partners.
The ministry said the MoU will further enhance inter-governmental cooperation in the key minerals sector. It will also help South Korean companies diversify their capabilities to source such minerals.
South Korea and Canada have also agreed to cooperate in the sustainable energy sector, and the move is expected to help more companies enter the North American market, which already uses hydropower to meet its energy demand. Uses a variety of sources including
According to the ministry, Seoul will spare no effort to carry out follow-up measures to the MoU to finalize details on cooperation.