South Korea is intensifying its efforts to secure a multibillion-dollar submarine contract in Canada, with its Industry Minister pledging deeper industrial cooperation. Seoul is emphasizing the proven track record of Korean companies in delivering on investment and job creation promises within Canada.
Industry Minister Kim Jung-kwan engaged in discussions with Canadian Industry Minister Melanie Joly on Thursday, focusing on potential collaborative opportunities related to Canada’s submarine procurement initiative. This meeting followed the submission of a proposal by a South Korean consortium, spearheaded by Hanwha Ocean and HD Hyundai Heavy Industries, for the project.
“Mirroring LG Energy Solution’s commitment to its investments and workforce in Canada, our goal is to forge a long-term partnership built on trust through this submarine project,” stated Minister Kim during the meeting, referencing LG Energy Solution’s recently established large-scale battery plant in Ontario.
The Canadian Patrol Submarine Project, with an estimated value exceeding $12 billion, seeks to replace four aging Victoria-class submarines, scheduled for retirement in the mid-2030s, with up to 12 diesel-powered submarines.
Alongside the Korean consortium, Germany’s ThyssenKrupp Marine Systems has been shortlisted as a contender, with a final decision anticipated in June.
The Industry Ministry confirmed that senior executives and specialists from relevant Korean enterprises, including Hyundai Motor, accompanied Minister Kim at Thursday’s meeting.
Hyundai Motor leveraged the meeting to underscore the significance and potential of Canada’s hydrogen resources, outlining prospective collaborations in developing a comprehensive hydrogen ecosystem encompassing production, refueling infrastructure, and mobility solutions.
Canada is seeking extensive industrial commitments linked to the bid as part of a broader strategy to reinforce its domestic manufacturing base. Sources indicate that South Korea has proposed potential local investments by Hyundai Motor, while Germany has proposed additional facilities related to Volkswagen.
During the meeting, both ministers highlighted the significance of their third meeting in the past four months and concurred that the submarine program could catalyze expanded bilateral industrial cooperation.
Minister Kim also attended the inauguration of the NextStar Energy battery plant in Windsor, Ontario, spearheaded by LG Energy Solution. The event saw attendance from LG Energy Solution CEO Kim Dong-myung, Ontario Premier Doug Ford, and Windsor Mayor Drew Dikens.
LG Energy Solution recently acquired Stellantis’ stake in the venture and intends to increase the facility’s workforce from 1,300 to 2,500 employees.
The plant will integrate with the company’s operations in Michigan to establish what LG claims will be the largest energy storage system supply network in North America, reinforcing its position within the region’s rapidly expanding battery market.
