Seoul steps up push for Canada submarine contract

South Korea’s industry minister pledged deeper industrial cooperation with Canada as Seoul intensifies its push to win a multibillion-dollar submarine contract, highlighting Korean companies’ track record of delivering on investment and job commitments in the country.

Industry Minister Kim Jung-kwan met Canadian Industry Minister Melanie Joly on Thursday to discuss potential collaboration tied to Canada’s submarine procurement program, shortly after a South Korean consortium led by Hanwha Ocean and HD Hyundai Heavy Industries submitted its proposal for the project.

“Just as LG Energy Solution has faithfully fulfilled its investment and employment commitments in Canada, we aim to build a long-term partnership based on trust through the submarine project,” Kim said during the meeting, referring to the South Korean firm's new large-scale battery plant in Ontario.

The Canadian Patrol Submarine Project, estimated at over $12 billion, aims to replace four aging Victoria-class submarines, which are set to retire in the mid-2030s, with up to 12 diesel-powered submarines.

Alongside the Korean consortium, Germany’s ThyssenKrupp Marine Systems has been shortlisted, with a final decision expected in June.

At Thursday’s meeting, senior executives and experts from related Korean companies, including Hyundai Motor, accompanied Kim, the Industry Ministry said.

Hyundai Motor used the meeting to highlight the importance and potential of Canada’s hydrogen resources and outlined possible cooperation to develop a hydrogen ecosystem linking production, refueling infrastructure and mobility.

Canada has sought broader industrial commitments tied to the bid as part of efforts to strengthen its domestic manufacturing base. South Korea has proposed potential local investment by Hyundai Motor, while Germany has suggested additional facilities linked to Volkswagen, according to industry sources.

During the meeting, the ministers noted it was their third meeting in four months and agreed the submarine program could serve as momentum for expanding bilateral industrial cooperation.

Kim also attended the opening ceremony of the NextStar Energy battery plant in Windsor, Ontario, led by LG Energy Solution. The event was attended by LG Energy Solution CEO Kim Dong-myung, Ontario Premier Doug Ford and Windsor Mayor Drew Dikens.

LG Energy Solution recently acquired its partner Stellantis’ stake in the venture and plans to expand the workforce at the facility from 1,300 to 2,500 employees.

The plant will connect with the company’s Michigan operations to form what LG says will be North America’s largest energy storage system supply network, strengthening its position in the region’s fast-growing battery market.