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South Korean industrial giants Hyundai and Hanwha Ocean are exploring a range of potential investments in Canada spanning automotive manufacturing, batteries, hydrogen energy and marine infrastructure, as Ottawa deepens industrial ties with Seoul and weighs a multibillion-dollar submarine procurement.

The federal government recently signed a non-binding memorandum of understanding (MOU) with the Republic of Korea aimed at closer cooperation on the “future of mobility,” including automotive and battery manufacturing. Hyundai representatives and Hanwha Ocean executives were part of the South Korean delegation involved in the talks, which are described as being in early stages.

Those discussions come as South Korea pushes to secure Canada’s contract to replace its aging submarine fleet—an agreement that multiple sources told CTV News could be worth roughly $100 billion over 30 to 40 years.

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For the federal government, the convergence of defence procurement, automotive manufacturing and clean-energy transition presents an opportunity to attract long-term industrial investment across multiple sectors—auto, steel, batteries and marine—while strengthening domestic supply chains.

As Volpe noted in CBC News, Canada’s regional strengths could support a coordinated approach.

“Given the advances in hydrogen technology from British Columbia to the advances in fuel sources in Quebec, this could be a pan-Canadian plan,” [the resident of the Automotive Parts Manufacturers’ Association (APMA) Flavio] Volpe says.

The submarine contract winner is expected to be selected by the end of 2026.