South Korea plans to expand ties with Canada in the battery sector amid the U.S. protectionism policy that gives incentives to electric cars produced in North America. (Image courtesy of Yonhap)
SEJONG, Oct. 25 (Korea Bizwire) — South Korea plans to expand ties with Canada in the battery sector amid the U.S. protectionism policy that gives incentives to electric cars produced in North America, a senior trade official said Wednesday.
Deputy Minister for Trade Yang Byeong-nae made the remark during his meeting in Seoul with his Canadian counterpart, Mark Schaan, to discuss ways to broaden economic ties, according to the Ministry of Trade, Industry and Energy.
“Since the implementation of the U.S. Inflation Reduction Act, South Korean companies are recognizing the significance of Canada as the new hub of the battery industry in North America,” Yang said.
The IRA offers tax credits of up to $7,500 to each buyer of a new EV assembled in North America and with batteries made of a certain amount of critical minerals produced in the region.
“It is important that South Korea and Canada establish a stable and reliable supply chain of key minerals, in order to take a leading position in the fast-growing battery industry,” Yang added.
Canada is North America’s top producer of key minerals used for the production of batteries, such as nickel, lithium and cobalt.
Accordingly, the ministry said there is significant potential for bilateral cooperation, given South Korea’s status as a global leader in battery technology.
(Yonhap)
