NextFin news, Germany and Canada signed a cooperation agreement on Tuesday in Berlin to deepen collaboration on critical raw materials, German Chancellor Friedrich Merz and Canadian Prime Minister Mark Carney announced at a joint press conference.
The agreement aims to reduce the heavy reliance on China for key raw materials such as rare earths, lithium, and copper, which are essential for manufacturing electric car batteries, wind turbines, and computer hard drives.
Chancellor Merz highlighted the importance of the partnership, stating, "This is a collaboration that I very much welcome and that we support." The agreement includes a memorandum of understanding to be signed by ministers from both countries, focusing on raw material processing, refining, and recycling technologies.
Prime Minister Carney emphasized the vulnerabilities exposed in global mineral supply chains due to recent events such as the Ukraine war and the coronavirus pandemic. He noted, "Germany has been amongst the leaders in beginning that diversification away from China," and added that Canada could help accelerate diversification efforts for Germany and Europe.
The cooperation agreement was signed in Berlin, Germany, on Tuesday, August 26, 2025. Both leaders declined to disclose specific details immediately but promised more information would be released later.
According to reports from AFP and Politico, the partnership will focus on five main objectives related to raw materials, including processing, refining, and recycling, covering materials that Canada can supply and Germany requires.
The move comes amid growing concerns over China's dominance in supplying critical minerals, especially after Beijing introduced export restrictions on key rare earth elements earlier this year.
The agreement reflects a strategic effort by Germany and Canada to secure stable and diversified supply chains for critical raw materials essential to their industries and national security.
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