Ministers sign memorandum of understanding on strengthening bilateral cooperation
OTTAWA, ON, Jan. 29, 2026 /CNW/ - Earlier this week, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, met with the delegation led by the Presidential Special Envoy for Strategic Economic Cooperation and Chief of Staff to the President of the Republic of Korea, Hoon-Sik Kang. They discussed key areas of collaboration for the two countries and ways to foster momentum for expanded bilateral industrial cooperation in strategic sectors--in particular, auto and battery manufacturing, critical minerals and artificial intelligence--and trade opportunities.
Minister Joly and her counterpart, Jung-Kwan Kim, Minister of Trade, Industry and Resources of the Republic of Korea, signed a memorandum of understanding (MOU) on strengthening Canada–Korea industrial collaboration on future mobility and establishing the Canada–Korea Industrial Cooperation Committee.
The MOU deepens the Canada-Korea Comprehensive Strategic Partnership, with its focus on economic prosperity and supply chain resilience. To support increased industrial growth, a forum will be established on Canada–Korea industrial collaboration for future mobility. This includes the intention to cooperate on advancing a Korean automotive industrial footprint in Canada and advancing domestic electric vehicle (EV) manufacturing opportunities. The Government of Canada is attracting new investments in the automotive sector that reinforce Canada's battery supply chain by supporting investment and cooperation in battery production, battery–materials processing and the refinement, processing and recycling of Canadian critical minerals. When it comes to critical minerals and auto manufacturing excellence, Canada has what the world wants and needs.
This MOU enhances the partnership between our two countries and will strengthen the automotive supply chain and enhance cooperation on critical mineral supply chains, clean energy transition and energy security. Through the expansion of this collaboration, our government is diversifying Canada's economy, attracting new investments that will create opportunities and well-paying jobs for Canadians, and securing economic resilience for years to come.
Canada is an auto nation--today, tomorrow and in the future--so our government is making strategic investments to protect jobs and strengthen the auto sector across the country.
Quotes
"Canada is an auto nation and home to world–class workers, cutting–edge innovation and some of the best vehicles manufactured anywhere in the world. This new memorandum of understanding with Korea strengthens that legacy and positions Canada to lead in the next generation of automotive excellence. By deepening cooperation in EV and hydrogen mobility, expanding battery and critical mineral partnerships, and attracting high–value investment into Canadian communities, this agreement will grow our auto sector, create good jobs and reinforce Canada's position as a global leader in future–ready vehicle manufacturing."
– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
"This memorandum of understanding reflects Canada's strategic approach to building a secure, competitive and sustainable energy future. Canada and the Republic of Korea are trusted partners, and by deepening cooperation on critical minerals, clean energy technologies and energy security, we are diversifying our exports and strengthening resilience on both sides of the Pacific. This collaboration supports good Canadian jobs, attracts long-term investment, and positions Canada as a reliable supplier for the global clean energy transition."
– The Honourable Tim Hodgson, Minister of Energy and National Resources
"This memorandum of understanding strengthens Canada's economic partnership with the Republic of Korea and delivers real economic benefits for Canadians. Our automotive industry contributes $16.8 billion to Canada's GDP and supports more than 550,000 jobs, and deeper industrial collaboration will help keep the sector competitive as advancements in electric vehicle and battery technologies continue to accelerate. Korean companies have committed billions of dollars in investment into Canada's battery ecosystem, supporting around 250 companies across the supply chain. I look forward to building on this momentum by leading a Team Canada Trade Mission to the Republic of Korea this spring."
– The Honourable Maninder Sidhu, Minister of International Trade
Quick facts
- Canada and the Republic of Korea (commonly known as South Korea) share a mature and multi-faceted relationship built on decades of cooperation, shared democratic values and growing strategic alignment, underpinned by the Canada–Korea Comprehensive Strategic Partnership launched in 2022.
- Canada and South Korea maintain a strong and diversified trade relationship, anchored by the Canada–Korea Free Trade Agreement, which came into force in 2015. Bilateral merchandise trade reached $24.5 billion in 2024, making South Korea Canada's seventh-largest trading partner.
- Canada's automotive industry plays a key role in the economy. With a $16.8 billion contribution to GDP in 2024, it is one of Canada's largest manufacturing sectors.
- In 2024, the industry directly employed more than 125,000 people and indirectly supported approximately 427,000 jobs, including through aftermarket services and dealership networks.
- South Korea's automotive industry is a major global player, ranking in the world's top ten for vehicle production, with over 4 million vehicles produced in 2024.
- In 2024, 12% of all cars sold in Canada, or 228,257 vehicles, were made by South Korean automotive companies.
- Since 2020, South Korean companies have committed billions of dollars in investments in Canada's emerging battery ecosystem, a key segment of the EV manufacturing supply chain, including LG Energy Solution, POSCO Future M, EcoPro BM and Volta Energy Solutions.
- The Canadian battery ecosystem is composed of around 250 companies along the battery processing, component, cell, pack, application, and reuse and recycling segments of the value chain.
Associated links
- Minister Joly meets with the Republic of Korea's Foreign Affairs Minister Park
- Memorandum of Understanding between the Department of Natural Resources of Canada and the Department of Industry of Canada and the Ministry of Trade, Industry and Energy of the Republic of Korea on Cooperation in Critical Mineral Supply Chains, the Clean Energy Transition and Energy Security
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Contacts: Gabrielle Landry, Press Secretary, Office of the Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, [email protected]; Media Relations, Innovation, Science and Economic Development Canada, [email protected]
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