(C) Nation Talk

Canadian Minister of Industry, Mélanie Joly, concluded her three-day visit to Korea by strongly declaring the expansion of industrial cooperation with the nation, signaling a new horizon for bilateral relations. Although the visit drew attention due to its timing—ahead of the final decision on the Canadian Navy’s next-generation submarine project (CPSP), valued at up to 60 trillion Korean won (approx. $43 billion USD)—Minister Joly indicated a 'two-track' strategy. She not only addressed the submarine bid but also expressed a broad willingness to cooperate with Korean companies in future industrial sectors, including critical minerals, batteries, and electric vehicles (EVs).

Minister Joly personally visited key facilities of the Korean consortium short-listed for the submarine project (Hanwha Ocean, HD Hyundai Heavy Industries), including the Hanwha Ocean Geoje Shipyard and the HD Hyundai Global R&D Center (GRC), confirming Korea's outstanding shipbuilding and defense capabilities. The Korean consortium is competing against Germany's TKMS for the submarine contract. Canada made it clear that, in addition to military capability, geopolitical alliance, and, most importantly, 'job creation and industrial benefits within Canada,' are key evaluation factors.

In an interview, Minister Joly stated, "I do not have the right to comment on specific competitors because a fair process is important," but she assessed both Korea and Germany as "competitive and satisfying." She emphasized that the final selection of the business operator is scheduled for the first half of next year, and her role is to closely evaluate the industrial benefits for Canada's interests. Notably, Canada is understood to have requested an Offset package from Korea related to the submarine contract, including cooperation in mineral exports and local investment in the automotive sector. This suggests that securing the submarine contract will align with comprehensive cooperation in the minerals and EV sectors.

Future Industries: Maximizing 'Complementary Strengths' in Minerals, Batteries, and EVs

Minister Joly’s meetings with Korean business officials from various sectors, including Hyundai Motor Company and Samsung SDI, beyond the submarine sites, clearly demonstrate Canada’s strategic goals. She stated, "We are looking to find more project opportunities with Korean companies in minerals, energy, batteries, and electric vehicles," and mentioned the success of attracting investment from Korean battery firms like LG Energy Solution and Samsung SDI.

The Canadian government possesses abundant critical minerals essential for battery manufacturing, such as lithium, nickel, and cobalt. Based on this, Canada has a vision to leap forward as the North American battery production hub by 2030. Canada intends to create synergy by combining the EV and battery manufacturing technology held by Korean companies with its own 'complementary strength' in critical minerals.

Minister Joly remarked, "Canada has everything the world needs regarding critical minerals, and I think we are a much safer place (than the US) to invest." This statement reveals the proactive intention of Canada, which feels a sense of crisis due to global trade tensions amid trade conflicts with the US administration, to diversify trade and attract more investment from Asia and Europe. This has led to the interpretation that Canada can provide a 'strategic foothold' for Korean companies seeking to enter the North American market amid the restructuring of US-centric supply chains. Canada is fully committed to attracting investment from Korean companies through comprehensive support policies, including operating cost reduction and employment cost deductions for investing firms.

Talent Strategy and Cultivating National Champions for a 'Stronger Canada'

Minister Joly stressed, "We want to build stronger Canadian companies, more national champions," and confirmed efforts to attract investment in manufacturing sectors such as aerospace and automotive. This is part of an industrial fostering policy that prioritizes Canadian interests. Canada is also preparing concrete support measures, such as operating relevant funds and hinting at their potential use as production subsidies in the future.

In particular, Canada is active in its strategy to attract talent to secure competitiveness in future industries. It is pursuing long-term goals to create a 'stronger Canada, a stronger economy' by investing $1.7 billion to bring over 1,000 research personnel to the country.

Minister Joly's visit served as a mutual confirmation of the need for a strategic partnership that combines Korea's excellent technological capabilities with Canada's rich resources and geographic advantages. While the 60-trillion-won submarine contract competition heats up, the expansion of cooperation between the two countries' companies in minerals, batteries, and EVs is expected to be an inevitable trend, regardless of the outcome. It is time for Korean companies to use Canada's investment attraction efforts as a prime opportunity to expand into the North American market and dedicate their full efforts to firmly establishing the 'K-Battery and K-EV supply chain' on Canadian soil.

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