Memorandum of Cooperation between the Department of Industry of Canada, the Department of Natural Resources of Canada, the Department of Foreign Affairs, Trade and Development of Canada and the Ministry of Economy, Trade and Industry of Japan, the Ministry of Foreign Affairs of Japan concerning Battery Supply Chains

The Department of Industry of Canada, the Department of Natural Resources of Canada, the Department of Foreign Affairs, Trade and Development of Canada and the Ministry of Economy, Trade and Industry of Japan, the Ministry of Foreign Affairs of Japan, hereinafter referred to as “the Participant(s)”,

Sharing the objectives of achieving carbon neutrality and economic security, and intending to strengthen coordination between Canada and Japan to build sustainable and reliable global battery supply chains from upstream to downstream;

Recognizing that Canada and Japan are committed to accelerating the green economy transition, thereby contributing to their objective of achieving carbon neutrality by 2050;

Acknowledging that batteries are an essential technology for the green economy and the global energy transition;

Taking note that Canada and Japan are committed to strengthening support measures to develop upstream critical mineral resources, expand midstream processing capacity, and foster their respective battery value chains;

Underscoring the necessity of collaboration among like-minded countries in order to build sustainable and reliable global battery supply chains, and a shared commitment to oppose market-distorting measures and monopolistic policies on critical minerals for batteries;

Observing that it is important to establish a global battery supply chain that builds on the complementary strengths of Canada and Japan;

Recognizing that both Canada and Japan have common interests in developing global battery supply chains from upstream to downstream to respond to accelerating market demands and opportunities, particularly for electric vehicles and to attain their respective net zero emission objectives by advancing bilateral collaboration;

Taking account of Canada’s role in the integrated North American automotive market and the potential for Japan to contribute to and benefit from new battery supply chain investments and projects in that market;

Acknowledging the target in Japan’s 2022 Battery Industry Strategy of securing manufacturing capacity of 600 gigawatt hours per year for Japanese industries by 2030 in the global market;

Recalling that the leaders of Canada and Japan confirmed their intention to strengthen cooperation on energy and collaborate on economic security at the Canada-Japan Summit Meeting in January 2023 in Ottawa and that they also concurred to work together towards accelerating cooperation on battery supply chains at their Summit Meeting in May 2023 in Hiroshima;

Reaffirming the importance of critical mineral supply chain resiliency and energy transition in the “Canada-Japan Action Plan for contributing to a free and open Indo-Pacific region”; strengthening critical mineral supply chains, clean energy sources and battery supply chains in alignment with Canada’s “Indo-Pacific Strategy”; coordination with Canada in Japan’s “New Plan for a Free and Open Indo-Pacific (FOIP)”; and the “Five-Point Plan for Critical Minerals Security” that was welcomed in the G7 Hiroshima Leaders’ Communiqué;

Stressing the importance of economic security, enhanced engagement with developing and emerging countries, as well as the maintenance of high environmental, social, and governance (ESG) standards promoted in various multilateral initiatives, including the Sustainable Critical Minerals Alliance and the Mineral Security Partnership (MSP);

HAVE REACHED the following non-legally binding understanding:

1. Objective
   1. The intended purpose of this Memorandum of Cooperation (hereinafter referred to as “this MOC”) is to support the Participants’ cooperation with respect to the establishment of sustainable and reliable global battery supply chains from upstream to downstream in Canada and Japan. This includes ensuring there are integrated, value-added investments in the upstream, midstream, and downstream sectors, which in turn enable more sustainable and reliable global battery supply chains between Canada and Japan.
   2. The Participants will encourage and facilitate, as appropriate, the advancement of collaboration and cooperation across and between their respective governments, industry, and research agencies.
2. Areas of Cooperation
   1. The Participants will cooperate to achieve carbon neutrality and economic security via existing bilateral strategic partnerships, including this MOC. This MOC will strengthen the global battery supply chain and promote bilateral collaboration on initiatives such as the Minerals Security Partnership, G7, and within relevant international organizations and fora.
   2. The Participants welcome existing bilateral cooperation on battery supply chains and will seek to develop sustainable and reliable global battery supply chain from upstream to downstream in Canada and Japan.
   3. This MOC encourages increased collaboration among and between, respective governments, and industry, to explore further cooperation in this field, where possible and appropriate, including by:
      1. promoting existing publicly available support, including financial support, in both countries for the exploration, development, production, refining, and processing of critical minerals such as lithium, nickel, cobalt, graphite, manganese and copper required for battery production;
      2. Collaborating in times of emergency to support the resilience of battery supply chains, including with respect to critical minerals, based on mutual decision where possible and appropriate;
      3. promoting existing publicly available support, including financial support, in both countries for investment and projects in Canada by Japanese battery-related companies and industry, and encouraging them, including through relevant business associations, to consider Canada for investment, emphasizing it as a base to supply the integrated North American automotive market;
      4. assisting with communication and promoting mutual understanding between Japanese investors and relevant regulatory authorities in Canada to discuss topics related to project development including how to most effectively and efficiently navigate associated processes;
      5. promoting the establishment of meaningful relationships with Indigenous peoples in Canada in the context of project planning and development of battery supply chains in Canada that Japanese investors are interested or involved in;
      6. promoting the use of renewable energy for the development, production, refining, and processing of critical minerals for batteries and the production of batteries and battery materials;
      7. promoting research and development related to battery supply chains;
      8. discussing international standards, guides and recommendations regarding battery safety and sustainability assurance issues such as carbon footprints and recycling;
      9. information sharing and exchange of views on relevant measures in battery supply chains; and
      10. other areas jointly decided upon by the Participants.
3. Forms of Cooperation
   1. The Participants intend to cooperate under this MOC in the following forms:
      1. identifying and facilitating technology, trade and investment, and related activities of mutual interest;
      2. conducting joint workshops, seminars, pilot projects, and symposia;
      3. organizing business-to-business and government-to-government missions, as appropriate;
      4. developing networks for efficient communication and information exchange between them and with other members of their respective public and private sectors;
      5. encouraging co-operation between industry and academic sectors in both countries;
      6. any other form of cooperation they may jointly decide upon.
   2. The Participants will discuss strengthening Canada-Japan cooperation on battery supply chains with regard for their shared objectives of achieving carbon neutrality and promoting economic security through utilizing bilateral consultations including the Canada-Japan Joint Economic Committee (JEC) and the Canada-Japan Energy Policy Dialogue (CJEPD).
   3. The Participants will engage in information exchanges, where relevant and appropriate, related to strengthening securing and diversifying battery supply chains.
4. Governance
   1. The Participants intend as follows:
      1. To implement cooperation on battery supply chains, the Participants will establish a Dialogue that will be co-chaired by a Bureau Director-General of the Ministry of Economy, Trade and Industry of Japan and an Assistant-Deputy-Minister from one of the Canadian participants. The Canadian Chair will rotate among the three Canadian participants annually. The members of the Dialogue are composed of representatives of the Participants. The Dialogue will be held annually.
      2. Where relevant, they may invite private sector representatives and related stakeholders to their meetings.
      3. When the Participants’ representatives meet in relation to cooperation stemming from this MOC, the current status of work under the Critical Minerals Working Group within the CJEPD will be taken into consideration to avoid duplication of efforts.
5. Intellectual Property
   1. If any intellectual property matters are expected to arise from the application of this MOC, the Participants will address them in separate appropriate instruments. Such instruments could include non-disclosure agreements, licensing agreements, collaborative research agreements, or other contracts.
6. Designated Contact Points
   1. The Participants designate the following points of contact for this MOC:
      1. For Canada:
         The Department of Industry of Canada;
         The Department of Natural Resources of Canada; and
         The Department of Foreign Affairs, Trade and Development of Canada
      2. For Japan:
         The Ministry of Economy, Trade and Industry of Japan; and
         The Ministry of Foreign Affairs of Japan
7. Differences in interpretation or application
   1. The Participants will endeavour to resolve any issue regarding the interpretation or application of this MOC through consultations.
8. Status
   1. This MOC is not legally binding.
9. Final Dispositions
   1. This MOC will come into operation on its last date of signature.
   2. This MOC may be modified by joint written decision. Any intention to modify this MOC will be notified to the other Participants through the designated contact points.
   3. This MOC may be discontinued at any time by any Participant by written notice. Any intention to discontinue this MOC should be notified to the other Participants through the designated contact points three (3) months in advance. The Participants decide that any information shared by a Participant prior to such discontinuance will continue to be treated in line with this MOC.