Department of Trade and Industry (DTI) Undersecretary Ceferino Rodolfo expects that the partnership between Manila and Seoul on critical raw materials will boost the local electric vehicle (EV) industry.
On the sidelines of the Philippines-Korea Business Forum here Monday, Rodolfo said the newly signed memorandum of understanding (MOU) will build a stable and resilient supply chain for critical raw materials in the country from mining to recycling.
The MOU is one of the government-to-government deals signed between Manila and Seoul during the visit of South Korean President Yoon Suk Yeol 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.
“For the first time, the DTI and DENR signed an agreement that encompasses everything from mining to mineral processing all the way to recycling. It’s truly a seamless approach to mineral development,” Rodolfo said.
According to Seoul’s Ministry of Trade, Industry, and Energy, the cooperation will include the development of supply chain, trade facilitation, and research and development (R&D).
Under the R&D partnership, Manila and Seoul will ensure the adaption of new technology, especially on rehabilitating mines and practicing sustainable mining.
The partnership lasts for five years from the date of signing, extendable for another three years upon mutual agreement.
Rodolfo said the MOU also aims to attract investments and create jobs, especially by bringing in capital from Korean companies that will invest 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, 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 that the partnership will really 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 motor is very simple to be produced here except that we don’t have the volume,” he told reporters on the sideline of the forum.
“But once we get the volume, easily—there’s some Taiwanese company has been talking to us for the last 14 years, and just waiting for the volume to go up, and they can locally produce the electric battery. For the rest, we have everything like auto parts, etc.,” he said. (PNA)
