Arkansas Gov. Sarah Huckabee Sanders signed her second economic cooperative agreement with South Korean officials Monday as part of her ongoing Asia trade trip.
The memorandum of understanding is meant to strengthen economic and cultural ties between Arkansas and the Korea International Trade Association (KITA) and Korea-U.S. Economic Council, Inc. (KUSEC).
Monday’s MOU calls for cooperation to develop business ties with a focus on leveraging lithium resources and insights. Lithium is a critical component in electric vehicle batteries and its availability in Southwest Arkansas has attracted companies like Standard Lithium and ExxonMobil to the state.
At a conference in Little Rock last month, Commerce Secretary Hugh McDonald predicted Arkansas could provide as much as 15% of the world’s finished lithium once production efforts ramp up.
Sanders is visiting Japan and South Korea with economic officials to try to recruit international investment in Arkansas. The trip, which ends Thursday, is the governor’s second overseas trip after a visit to Europe last year.
Arkansas exports more than $100 million worth of products, like paper, cotton and plastics, to Korea annually, according to the governor’s office. Korean companies also have several facilities in Arkansas, including Samsung in Bentonville and Kiswire Ltd. in Pine Bluff.
Sanders signed her first MOU Friday with Mayor Hyun-jae Lee of South Korea’s Hanam City, Little Rock’s sister city. Both economic cooperative agreements outline a commitment between both parties to inform one another of trade exhibitions and investment seminars in their respective territories and to cooperate on trade and agricultural science and technology initiatives.
The agreements are valid for 10 years, automatically renewing annually unless either party provides written notice of termination at least six months before the expiration date.
Sanders also met with Hyundai and Kia executives, as well as Jin Roy Ryu, chairman of the Federation of Korean Industries and chairman and CEO of Poongsan Group, one of the largest metal manufacturers in the world.
