Quick Takeaways
- Korean auto manufacturing in Canada is set to expand through a new bilateral industrial cooperation agreement.
- The partnership strengthens EV, battery, and critical mineral collaboration between Canada and South Korea.
On January 29, the governments of Canada and South Korea announced a significant step to deepen industrial ties with a new agreement focused on Korean auto manufacturing in Canada. The Honourable Mélanie Joly, Canada’s Minister of Industry, and Jung-Kwan Kim, South Korea’s Minister of Trade, Industry and Resources, signed a memorandum of understanding aimed at attracting Korean automotive production to the Canadian market.
Strategic focus on industrial collaboration
Delegations from both countries held discussions on priority collaboration areas and long-term opportunities to expand bilateral industrial engagement. The talks covered strategic sectors that are central to future mobility and competitiveness, including automotive manufacturing, battery production, critical minerals, artificial intelligence, and broader trade prospects.
This collaboration reflects a shared intent to align industrial policies and create conditions that support resilient and competitive manufacturing ecosystems across both economies.
New committee to support automotive expansion
As part of the agreement, Canada and South Korea will set up a Canada–Korea Industrial Cooperation Committee. The committee will focus on enabling a stronger Korean automotive industrial footprint in Canada while also advancing domestic electric vehicle manufacturing opportunities.
Key objectives of this cooperation include:
Strong market presence of Korean automakers
According to the Canadian government release, South Korean automotive brands already play a major role in the country’s vehicle market. In 2024, vehicles produced by South Korean companies accounted for 12% of all cars sold in Canada, totaling 228,257 units.
This established market presence provides a solid foundation for expanding local manufacturing and deepening supplier integration.
Growing investment in Canada’s EV supply chain
Since 2020, South Korean companies have committed billions of dollars to Canada’s electric vehicle manufacturing ecosystem. These investments span key areas of the value chain, including battery materials, cell production, and energy solutions.
Notable contributors to this investment momentum include LG Energy Solution, POSCO Future M, EcoPro BM, and Volta Energy Solutions, reinforcing Canada’s position as a strategic hub for next-generation automotive and EV manufacturing.
With the new MOU in place, both governments are signaling a long-term commitment to industrial cooperation, positioning Korean auto manufacturing in Canada as a central pillar of future automotive and clean mobility growth.
Strategic focus on industrial collaboration
Delegations from both countries held discussions on priority collaboration areas and long-term opportunities to expand bilateral industrial engagement. The talks covered strategic sectors that are central to future mobility and competitiveness, including automotive manufacturing, battery production, critical minerals, artificial intelligence, and broader trade prospects.
This collaboration reflects a shared intent to align industrial policies and create conditions that support resilient and competitive manufacturing ecosystems across both economies.
New committee to support automotive expansion
As part of the agreement, Canada and South Korea will set up a Canada–Korea Industrial Cooperation Committee. The committee will focus on enabling a stronger Korean automotive industrial footprint in Canada while also advancing domestic electric vehicle manufacturing opportunities.
Key objectives of this cooperation include:
- Supporting Korean automakers and suppliers exploring Canadian manufacturing investments
- Strengthening EV and battery supply chains within Canada
- Enhancing collaboration on advanced manufacturing technologies
Strong market presence of Korean automakers
According to the Canadian government release, South Korean automotive brands already play a major role in the country’s vehicle market. In 2024, vehicles produced by South Korean companies accounted for 12% of all cars sold in Canada, totaling 228,257 units.
This established market presence provides a solid foundation for expanding local manufacturing and deepening supplier integration.
Growing investment in Canada’s EV supply chain
Since 2020, South Korean companies have committed billions of dollars to Canada’s electric vehicle manufacturing ecosystem. These investments span key areas of the value chain, including battery materials, cell production, and energy solutions.
Notable contributors to this investment momentum include LG Energy Solution, POSCO Future M, EcoPro BM, and Volta Energy Solutions, reinforcing Canada’s position as a strategic hub for next-generation automotive and EV manufacturing.
With the new MOU in place, both governments are signaling a long-term commitment to industrial cooperation, positioning Korean auto manufacturing in Canada as a central pillar of future automotive and clean mobility growth.
Industry reports & Public Disclosures | GIA Analysis
Click above to visit the official source.
Share: