Korea-Canada MOU on Cooperation in Critical Mineral Supply Chains, the Clean Energy Transition and Energy Security

Country / jurisdiction: Korea · Year: 2023 · Status: In force · Level: National · Type: Voluntary

The 2023 Memorandum of Understanding (MOU) between Canada and the Republic of Korea focuses on critical minerals and energy transition cooperation, reflecting a commitment to collaborative efforts in critical minerals and energy transition.

Cooperation covers trade and investment in critical mineral supply chains, energy transition, information exchange on mineral processing and recycling, clean fuels like hydrogen, carbon capture and storage technologies, and manufacturing in areas such as clean energy, zero-emission vehicles, and semiconductors. Forms of cooperation include facilitating technology and investment activities, conducting joint workshops, organising missions, developing communication networks, encouraging collaboration with sub-national governments, and investment screening cooperation.

Actions to implement the MOU involve developing an action plan, sharing information, working through existing mechanisms, convening new working groups, and inviting relevant groups to contribute to cooperation mechanisms.

The MOU also addresses the provision in the US Inflation Reduction Act that requires minerals to be sourced from the US or a Free Trade Agreement partner to avail of the electric vehicle tax credit , allowing Korea to leverage these tax credits through Canada.

Official source: https://www.international.gc.ca/country_news-pays_nouvelles/2023-05-16-korea-coree.aspx?lang=eng