MANILA – A recent memorandum of understanding (MOU) between the Philippines and South Korea is set to significantly enhance the local electric vehicle (EV) industry by establishing a robust and resilient supply chain for critical raw materials:A recent memorandum of understanding (MOU) between the Philippines and South Korea is set to significantly enhance the local electric vehicle (EV) industry by establishing a robust and resilient supply chain for critical raw materials, ranging from mining to recycling, according to top officials.
According to Philippines News Agency, the partnership, announced during the Philippines-Korea Business Forum, aligns with the visit of South Korean President Yoon Suk Yeol. The MOU signing was witnessed by President Ferdinand R. Marcos Jr. and involved key officials such as 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.
Ceferino Rodo
lfo, Undersecretary at the Department of Trade and Industry (DTI), highlighted the comprehensive nature of the agreement. “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,” he explained.
The MOU outlines a cooperation that includes the development of supply chain management, trade facilitation, and extensive research and development (R and D). The R and D efforts will particularly focus on adapting new technologies for sustainable mining practices and mine rehabilitation.
This bilateral agreement is set to last for five years, with an option to extend for an additional three years by mutual consent. Beyond strengthening the supply chain, the MOU aims to attract investments and generate employment opportunities, potentially bringing significant capital from Korean companies into the Philippines’ critical raw materials sector.
Rodolfo also noted ongoing discu
ssions between the Board of Investments and Korean EV battery manufacturers, indicating imminent investment inflows. The private sector, represented by Ferdinand Raquelsantos, chairman emeritus of the Electric Vehicle Association of the Philippines (EVAP), expressed optimism about the MOU’s potential to catalyze the local production of EV engines and attract global players to the Philippine market.
“Electric motor is very simple to be produced here except that we don’t have the volume,” Raquelsantos said during the forum. He mentioned that increased production volumes could lead to local manufacturing of electric batteries, tapping into existing capabilities in auto parts and other components.