SEJONG - South Korea is looking to strengthen its ties with Canada in the battery industry in light of U.S. protectionist policies, according to Deputy Minister for Trade Yang Byeong-nae.
According to a news release by Yonhap News Agency, Industry and Energy, Yang made the remarks during a meeting with his Canadian counterpart, Mark Schaan, in Seoul. The two officials discussed ways to deepen economic collaboration. Yang mentioned that due to the U.S. Inflation Reduction Act, South Korean companies are increasingly seeing Canada as a vital hub for the North American battery industry.
The U.S. Inflation Reduction Act offers tax credits of up to $7,500 to each purchaser of a new electric vehicle assembled in North America and whose batteries contain a specific quantity of regionally produced critical minerals.
Yang also emphasized the importance of establishing a stable supply chain between South Korea and Canada for key minerals essential for batteries. Canada is North America's leading producer of key minerals like nickel, lithium, and cobalt. Given South Korea's position as a global leader in battery technology, the ministry stated that there is significant potential for increased bilateral cooperation in this sector.