The Board of Investments (BoI) on Monday welcomed a new agreement between South Korea and the Philippines aimed at boosting development for electric vehicles.

The memorandum of understanding was signed by Trade Secretary Ma. Cristina Roque, Environment and Natural Resources Secretary Maria Antonia Yulo, and Korea’s Minister of Trade, Industry, and Energy Ahn Duk Geun during a ceremony witnessed by Philippine President Ferdinand R. Marcos Jr. and Korean President Yoon Suk Yeol.

"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," said BoI managing head and Trade Secretary Ceferino Rodolfo.

Seoul's Ministry of Trade, Industry, and Energy said the cooperation will include developing the supply chain, facilitating trade, and conducting research and development.

Under the R&D partnership, Manila and Seoul will ensure the adoption of new technology, especially in 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 agreement also aims to attract investments and create jobs, especially by bringing capital from Korean companies into the critical raw materials supply chain. "The BoI is already in talks with Korean EV battery manufacturers," he added.  

The Department of Trade and Industry has maintained that the Philippines has rich natural resources and a ripe economic climate for investments in mining and green metals processing. The country is leveraging its reserves of green metals to establish itself as a significant player in the transition towards a clean economy.

According to the United States Geological Survey, the Philippines was the second-largest producer of mined nickel in 2023, with an estimated production of 400,000 metric tons.

With 26 producing nickel mines, the country is currently the top exporter of nickel direct shipping ore globally, mostly exported to China and other parts of Asia, including South Korea.

The Philippine nickel industry remains a key player in the global market, supplying raw materials for the manufacturing of stainless steel, batteries, and other industrial applications.

Apart from nickel, the Philippines also has abundant sources of other critical minerals, such as cobalt (typically produced alongside nickel in the form of mixed-nickel cobalt sulfide), copper, chromite, gold, and iron, among others.