The Board of Investments (BoI) welcomes the sealing of a memorandum of understanding (MoU) between the governments of South Korea and the Philippines on critical raw materials seen to improve developments for electrical vehicles.
On Monday, President Ferdinand R. Marcos Jr. and Korean President Yoon Suk Yeol witnessed the signing of the MoU between 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.
“For the first time, the DTI and DENR have signed an agreement encompassing everything from mining to mineral processing and all the way to recycling. It’s truly a seamless approach to mineral development,” said Board of Investments managing head and Trade Secretary Ceferino Rodolfo in an interview on the sidelines of the Philippines-Korea Business Forum at the Manila Hotel on Monday.
For his part, Seoul’s Ministry of Trade, Industry, and Energy said the cooperation will include the development of the supply chain, trade facilitation and research and development.
Ensure adoption of new technology
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 MoU also aims to attract investments and create jobs, especially by bringing capital from Korean companies into the critical raw materials supply chain, adding that “the BoI is already in talks with Korean EV battery manufacturers.”
Earlier, the Department of Trade and Industry maintained that the Philippines has rich natural resources and a ripe economic climate for investments in mining and green metals processing, and the country is leveraging its reserves of green metals to establish itself as a significant player in the transition towards a clean economy.
Second-largest mined nickel producer
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.