Defense Metals has signed a memorandum of understanding (MOU) with Hanwha Ocean, a South Korea-based shipbuilding and marine engineering company, to explore the supply of rare earth elements.
Under the MOU, which is non-binding, the companies will evaluate a potential agreement where Defense Metals would sell rare earth materials from its Wicheeda project in B.C. to Hanwha, supporting the company’s manufacturing and supply chain. Hanwha is also considering an investment in Defense Metals, subject to due diligence and further negotiation.
"This MOU is an important step in advancing a made-in-Canada critical minerals supply chain supporting strategically important defence and maritime industries," Mark Tory, the president and CEO of Defense Metals, said. "Rare earth elements are increasingly recognized as foundational materials for next-generation defence technologies and advanced manufacturing,” he added.
A spokesperson for Hanwha said the company is looking to strengthen its ties to Canada’s critical minerals sector as the federal government moves to modernize its naval fleet.
The agreement comes as Hanwha competes for Canada’s multibillion‑dollar submarine program and follows other Canadian partnerships, including MOUs with the Automotive Parts Manufacturers’ Association and Algoma Steel.
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