INTERVIEW Invest Alberta to help POSCO secure minerals for EV batteries
Invest Alberta CEO Rick Christiaanse speaks during an interview with The Korea Times at the Canadian Embassy in Seoul, Wednesday. Courtesy of Invest Alberta
Canada has been mentioned frequently these days as one of the most popular investment destinations for Korean battery firms that cooperate with global carmakers, amid the recent trends of on-shoring and near-shoring, caused mainly by the escalating geopolitical tensions between the U.S. and China.
Alberta, however, has stayed out of Korean media’s interest, compared to other Canadian provinces such as Quebec and Ontario, despite the fact that the western province has made efforts over the past five decades to boost economic cooperation with Korea.
With Alberta having drawn attention here for its latest partnership with POSCO Holdings, Invest Alberta CEO Rick Christiaanse told The Korea Times in a recent interview that the province has distinct advantages that can attract Korean and other global enterprises to come.
“We are the largest supplier of oil to the Americans and the largest democracy, in terms of holdings of oil and gas,” said the head of the corporation established to promote Alberta as an investment destination. “We’re rapidly diversifying our resources, as we actually have 29 of the 31 critical minerals that are needed for electric vehicle (EV) batteries.”
Due to the richness of natural resources, POSCO Holdings signed a memorandum of understanding with Invest Alberta on Wednesday, for the extraction of lithium from oil-field brine, which is considered a more cost-efficient and eco-friendly method compared to traditional mining.
Invest Alberta plans to provide administrative supports for the Korean firm’s investment in the province, helping its communication with local business partners.
The agreement was the result of a meeting between POSCO Group Chairman Choi Jeong-woo and then Alberta Premier Jason Kenney last year, which led to a wide range of discussions, according to the Invest Alberta CEO.
Although concerns are growing recently among market observers over the falling mineral prices and slowing demand for EVs, Christiaanse dismissed such concerns, saying that his company and the province are handling this issue from a long-term point of view.
“We’re used to seeing boom and bust,” he said. “If you remember the oil price a few years ago, we actually had to take money to people buying our oil.”
Invest Alberta CEO Rick Christiaanse, left, and Lee Kyung-sub, executive vice president of POSCO Holdings' battery materials business team, pose after signing a memorandum of understanding at the Canadian Embassy in Seoul, Wednesday. Courtesy of Invest Alberta
Seeking deeper partnership with Korea
Christiaanse noted that the incumbent premier of Alberta has also been interested in a deeper and more meaningful relationship with Korea and Korean companies doing business in the province, such as Hyundai Engineering and HD Hyundai Oilbank.
“There is an incredible level of interests from Korean companies in doing work in Alberta,” he said. “We always have had great partnership.”
The CEO emphasized that Alberta has friendlier immigration policies, so that foreign businesspeople enter the market more quickly and create a stable business environment for the long term.
He also said the province has run surpluses, despite its low tax rates.
“Would you rather deal with a government that has no debt, or one that is running deficits? That’s one thing that makes us unique,” he said.
Mentioning the fact that 200,000 people moved to Alberta last year, Christiaanse cited the natural environment and quality of life in the province as the reasons for global talent to move in.
The CEO himself, who was born in the Netherlands and obtained Canadian citizenship, said he looks forward to spending summer in Alberta, be it walking in Edmonton's extensive River Valley parks or hiking the Rocky Mountains.
Although the concentration of talent made Alberta’s residents the highest-paid population in Canada, he said the province still has a cost advantage for global companies, given that the Canadian dollar is weaker than the U.S. dollar.