November 21, 2024

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SK Inc. CEO Jang Yong-ho (center left) and Export Development Canada CEO Mairead Lavery (center right) pose for a photo after a strategy meeting in Seoul in April. (SK Group)

SK Group said Thursday that it has teamed up with Export Development Canada, the country’s exports credit agency, to boost cooperation in high-tech areas such as renewable energy and batteries.

SK Inc., the holding unit of the group, signed a memorandum of understanding with EDC to forge a long-term partnership with its CEO Jang Yong-ho and EDC CEO Mairead Lavery in attendance.

"This MOU is significant in that SK and Canada's public financial institution cooperate under a common objective to advance green industry and achieve carbon neutrality," an SK official explained.

SK is committed to reaching net zero emissions before the global target year of 2050, while the Canadian government aims to achieve 100 percent renewable energy generation by the same year.

SK expects that this partnership will create a more stable investment environment conducive to achieving net zero. By utilizing its manufacturing expertise in semiconductors and batteries, SK also anticipates generating synergies in high-tech industries through collaboration with Canada, a rich repository of critical minerals like lithium, cobalt, graphite and nickel.

The latest partnership comes after SK Group Chairman Chey Tae-won met with Canadian Prime Minister Justin Trudeau in Seoul in May last year, during which the two leaders discussed SK’s commitment to investing in renewable areas and Canada’s full policy support.

Meanwhile, SK has been actively investing in North America. SK On, the battery-making unit, is seeking to set up a joint battery plant in Canada in partnership with US automaker Ford and Korea’s cathode materials maker EcoPro BM, while similar talks are ongoing to build a battery joint venture in Georgia with Hyundai Motor Group.

"We hope this partnership will enhance exchanges between Korea and Canada. Building networks and supply chains will also expand trade opportunities between the two countries," said Lavery.

By Kim Jun-hong (hongie@heraldcorp.com)