A memorandum of understanding (MOU) between Manila and Seoul is seen as boosting the country's local electric vehicle (EV) industry by stabilizing the supply chain, particularly raw materials for batteries and electric motor production.
Department of Trade and Industry (DTI) Undersecretary Ceferino Rodolfo said the MOU would build a stable and resilient supply chain for critical raw materials in the country from mining to recycling.
"For the first time, the DTI and DENR signed an agreement encompassing everything from mining to mineral processing to recycling. It's truly a seamless approach to mineral development," Rodolfo said.
The MOU is one of the government-to-government deals signed between Manila and Seoul during South Korean President Yoon Suk Yeol's visit here. President Ferdinand R. Marcos Jr. and Yoon witnessed the MOU signing between Acting DTI Secretary Ma. Cristina Roque, Department of Environment and Natural Resources (DENR) Secretary Maria Antonia Yulo, and Korea's Minister of Trade, Industry, and Energy Ahn Duk Geun.
According to Seoul's Ministry of Trade, Industry, and Energy, the cooperation will include developing supply chains, trade facilitation, and research and development (R&D). Under the R&D partnership, Manila and Seoul will ensure the adoption of new technology, especially in rehabilitating and practicing sustainable mining.
The partnership lasts five years from the date of signing and is extendable for another three years upon mutual agreement.
Rodolfo said the MOU also aims to attract investments and create jobs, especially by attracting capital from Korean companies investing in the critical raw materials supply chain. He added that the Board of Investments is already in talks with Korean EV battery manufacturers.
For the private sector, the Electric Vehicle Association of the Philippines (EVAP) Chairman Emeritus Ferdinand Raquelsantos said the MOU between the two countries is a welcome development to support the local EV industry. Raquelsantos hopes the partnership will facilitate investments in the EV sector, specifically the production of EV engines, not only from Korea but also from other countries that are strong EV players in the global market.
"Electric motors are very simple to produce here except that we don't have the volume," he told reporters on the sidelines of the forum. "But once we get the volume, easily—some Taiwanese company has been talking to us for the last 14 years and is just waiting for the volume to go up, and they can produce the electric battery locally. For the rest, we have everything like auto parts, etc.," he said.
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