{"id":2201057,"date":"2023-05-18T08:00:41","date_gmt":"2023-05-17T23:00:41","guid":{"rendered":"https:\/\/koreapro.org\/?p=2201057"},"modified":"2023-05-17T19:58:49","modified_gmt":"2023-05-17T10:58:49","slug":"south-korea-and-canada-sign-deal-to-bolster-critical-mineral-supply-chain","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/05\/south-korea-and-canada-sign-deal-to-bolster-critical-mineral-supply-chain\/","title":{"rendered":"South Korea and Canada sign deal to bolster critical mineral supply chain"},"content":{"rendered":"
Canadian Prime Minister Justin Trudeau met with South Korean President Yoon Suk-yeol in Seoul on Wednesday. During the meeting, the two countries signed a new Memorandum of Understanding (MOU) focused on \u201cCooperation in Critical Mineral Supply Chains, the Clean Energy Transition, and Energy Security,\u201d according to a joint statement.<\/span><\/p>\n This MOU follows a previous discussion between Yoon and Trudeau in Ottawa <\/span>last September<\/span><\/a>. Its intention is to support the development of \u201cclean technologies that will power green and sustainable economic growth.\u201d Both leaders emphasized the potential for this agreement to enhance their countries\u2019 global competitiveness in sectors such as battery production and zero-emission vehicles. The joint press conference was held on Wednesday evening, following the summit.<\/span><\/p>\n South Korea\u2019s presidential office further explained that the agreement would lead to the creation and operation of a dedicated working group that would formulate \u201caction plans\u201d to bolster trade and investment related to critical minerals, including the \u201csmelting, trading, and recycling\u201d of core minerals. Additionally, the two countries will collaborate on strategies to support each other\u2019s transition to clean energy. This includes efforts in hydrogen energy and carbon capture, utilization, and storage (CCUS), Yoon\u2019s office stated.<\/span><\/p>\n Dear readers,<\/span><\/i><\/p>\n At KOREA PRO, we are committed to providing engaging and informative content tailored to our discerning audience. Recognizing the significance of your perspectives in enriching our offerings, we cordially extend an invitation for your participation in a brief <\/span><\/i>5-minute survey<\/span><\/i><\/a>. This opportunity allows us to capture your invaluable feedback and insights, which we greatly appreciate and consider integral to our ongoing commitment to service excellence.<\/span><\/i><\/p>\n Why It Matters<\/b><\/p>\n This agreement signifies a crucial development in South Korea\u2019s efforts to diversify its critical minerals supply chain. Currently, about 80% of the country\u2019s rare earth minerals \u2014 essential in manufacturing high-end goods such as electric vehicle (EV) batteries \u2014 come from China. The need to identify alternative markets has become increasingly urgent due to <\/span>strained relations<\/span><\/a> between Seoul and Beijing. The tension stems from the Yoon administration\u2019s recent moves to align more closely with the U.S., coupled with the lingering impact of China\u2019s <\/span>unofficial sanctions<\/span><\/a> in 2017 following Seoul\u2019s decision to host U.S. Terminal High Altitude Area Defense (THAAD) anti-missile batteries. To further diversify, Seoul aims to reduce its mineral dependence on China to <\/span>50%<\/span><\/a> by 2030.<\/span><\/p>\n Moreover, South Korea has committed to ambitious environmental goals. It aims to <\/span>reduce its carbon emissions<\/span><\/a> to 40% of its 2018 levels by 2030 and to achieve <\/span>net-zero<\/span><\/a> emissions by 2050. These are significant challenges for an economy that depends heavily on energy imports. Canada, as one of the world\u2019s largest energy producers and a significant <\/span>net energy exporter<\/span><\/a> over the past two decades, could potentially play a significant role in South Korea\u2019s transition.<\/span><\/p>\n Enhanced economic cooperation between Seoul and Ottawa could also pave the way for South Korea to gain better access to the U.S. consumer market. This is especially relevant in light of the <\/span>United States-Mexico-Canada Agreement<\/span><\/a> (USMCA) and the U.S. Inflation Reduction Act\u2019s guidelines. These stipulate that electric vehicles are eligible for U.S. tax credits if at least half of the battery components are manufactured in <\/span>North America<\/span><\/a>.<\/span><\/p>\n