South Korea-Canada to Strengthen Nickel and Cobalt Supply Cooperation in Response to IRA

The South Korean government and the Canadian Parliament have agreed to strengthen supply chain cooperation on critical minerals such as nickel and cobalt, beyond the existing trade of coal and iron ore. The South Korean government expects this to help address the global critical minerals supply crisis triggered by the U.S. Inflation Reduction Act (IRA) and other factors.

On the 10th, Ahn Deok-geun, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy, held a meeting with the Canadian parliamentary delegation to discuss ways to enhance cooperation on critical minerals between the two countries.

At the meeting, Director-General Ahn mentioned that trade between South Korea and Canada reached a record high, increasing from $13.1 billion in 2021 to $16.4 billion in 2022 despite the pandemic situation. He proposed close cooperation in advanced industries such as batteries and AI to sustain mutual development between the two complementary economies?South Korea with strengths in finished and semi-finished products, and Canada with strengths in raw materials.

The Canadian delegation expressed gratitude for the entry of globally competitive Korean companies into Canada and emphasized the importance of strengthening the Korea-Canada supply chain to actively support industrial cooperation between companies of both countries.

According to the Ministry of Trade, Industry and Energy, both sides agreed to produce tangible results in the energy sector, including critical minerals cooperation discussed since the last summit, and to develop trade focused on critical minerals such as nickel and cobalt rather than general minerals like coal and iron ore. As of 2021, Canada produces 13.5% (2nd place worldwide) of the world’s titanium, 4.4% (4th place) of cobalt, and 4.3% (6th place) of nickel. The ministry expects that strengthening the critical minerals supply chain between the two countries will greatly contribute to diversifying the procurement capabilities of South Korean industries in response to the IRA.

Furthermore, both sides shared the view on the importance of industrial and trade cooperation among allied countries amid the ongoing supply chain crisis and exchanged opinions on strengthening multilateral cooperation in the Asia-Pacific region.

Additionally, Director-General Ahn requested Canadian support for South Korea’s bid to host the 2030 Busan World Expo and emphasized actively discovering economic cooperation achievements that can combine the strengths of both countries, such as in the supply chain cooperation field.

Andeok Geun, Director General for Trade Negotiations, Ministry of Trade, Industry and Energy.

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