Canada to Import 'Lithium and Cobalt'... Strengthening Response to US IRA

MOU on Critical Minerals Between Two Countries' Companies
LG Energy Solution Supplies North American Secondary Batteries
Canada as a Key Critical Minerals Resource Country

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is speaking at the industry meeting responding to the U.S. Semiconductor and Electric Vehicle Support Act held on the 25th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Moon Honam munonam@

[Asia Economy Sejong=Reporter Dongwoo Lee] Our government has decided to strengthen cooperation with Canada on critical mineral supply chains in response to the United States' Inflation Reduction Act (IRA).

On the 22nd (local time), Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy attended the signing ceremony of the memorandum of understanding (MOU) for cooperation on critical mineral supply chains between the two countries' companies held in Toronto, Canada, emphasizing the necessity of responding to the global supply chain crisis through expanded cooperation in the critical minerals sector between the two countries.

At the event, LG Energy Solution signed three MOUs with three Canadian companies regarding the supply and processing of critical minerals such as lithium and cobalt, and the Korea Mining Promotion Agency signed a total of four MOUs with the Canadian Ministry of Natural Resources for information exchange and technology development cooperation in the critical minerals sector.

LG Energy Solution is expected to stably supply Canadian critical minerals to secondary battery manufacturing plants in the North American region. The Korea Mining Promotion Agency will also be able to strengthen its role in supporting the private sector by expanding information exchange with the Canadian government in the critical minerals sector, including providing information on Canadian mining investments.

The background for our government and companies to promote meetings with Canadian mineral companies is that securing critical minerals has emerged as a major task amid the increasingly intense global resource hegemony competition. With mounting pressure for 'de-China' centered on the United States, Canada is being utilized as a new alternative for energy security.

In particular, the MOU with Canada is expected to play a significant role in helping our companies respond to the U.S. IRA. It will enable the establishment of a North American supply chain connecting critical mineral raw materials, material components, and final products in the secondary battery and electric vehicle sectors. Canada is a mineral-rich country possessing lithium (530,000 tons), nickel (2.8 million tons), cobalt (220,000 tons), rare earth elements (830,000 tons), and platinum group metals (310 tons). South Korea mainly exports automobiles, steel products, and smartphones, while importing thermal coal and iron ore from Canada.

The government expects that the signing of this MOU will further promote investment and trade between the two countries. It is evaluated as creating a cooperation momentum for the two countries to jointly respond to the global supply chain disruptions that have become regular since the pandemic. Heather Stefanson, Premier of Manitoba, and George Pirie, Minister of Ontario, who attended the signing ceremony, also stated that the Canadian government plans to cooperate at the government level, including expanding investments to strengthen global supply chain resilience.

Minister Lee said, "We will establish a dialogue channel with the Canadian government related to critical minerals and seek specific cooperation plans to build a critical mineral supply chain in the future."