The Canadian and South Korean governments have signed a memorandum of understanding (MOU) which intends to deliver South Korea’s auto manufacturing (Hyundai, Kia) and funding to Canada, in line with The Globe and Mail.
Reportedly, the deal stems from the nation’s marketing campaign to win a multibillion-dollar contract to construct as much as 12 submarines for the Royal Canadian Navy.
Canadian Trade Minister Melanie Joly and Korea’s Minister of Commerce, Trade, and Assets, Kin Jung-kwan, signed the MOU this week as a South Korean authorities delegation visited Canada concerning the submarine bid. Hyundai Motor Group govt chair Euisun Chung can be a part of the go to.
The settlement notes that each events will work on “advancing a Korean automotive footprint in Canada” and to pursue “electrical automobile (EV) manufacturing alternatives.”
The settlement additionally states that the 2 nations will cooperate on “rising Korea’s battery manufacturing presence in Canada” and on the battery provide chain, together with “manufacturing, vital materials extraction and refinement, analysis, growth, and extraction.”
Primarily based on present estimates, Hyundai and Kia are more likely to be among the many foremost beneficiaries of the deal, given the auto group’s reputation in Canada. Outdoors of the journey to Ottawa, Hyundai has struggled to get some autos north of the border on account of tariffs. One instance is the Hyundai Santa Cruz, which was so severely affected that 2025 fashions weren’t shipped to Canada.
If a Hyundai plant had been to be established in Canada, it could probably be inbuilt Ontario. Based on Make investments Ontario, the province ranked because the second-highest auto producer in 2024, with 1.3 million autos constructed. There are additionally a number of plant choices accessible, with the American Huge Three scaling again operations within the province. Rumours have circulated that Basic Motors might promote the CAMI plant in Ingersoll, Ont., leaving its future unsure.
Most probably, tariff-affected fashions just like the doomed Santa Cruz or the potential body-on-frame Hyundai pickup can be constructed within the province, however EV manufacturing alternatives counsel that one thing from Hyundai’s Ioniq lineup may very well be constructed on Canadian Soil.
Supply: The Globe and Mail
Picture Credit score: Shutterstock
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