German Chancellor Friedrich Merz is set to host Canadian Prime Minister Mark Carney on Tuesday for discussions centering on critical raw materials. A letter of intent outlining strengthened collaboration between the two nations is expected to be released during the meeting.
According to reports from POLITICO, referencing analysis by the consultancy Adelphi, the agreement will articulate five key objectives. Adelphi is currently implementing the German Federal Government’s energy partnership with Canada on behalf of the Federal Ministry for Economic Affairs.
The core of the partnership will focus on bolstering cooperation and trade throughout the critical raw materials value chain, with a particular emphasis on technologies related to processing, refining and recycling. Joint efforts will concentrate on resources Canada possesses and Germany requires, specifically lithium, rare earth elements, copper, tungsten, gallium, germanium and nickel. This initiative aims to diversify Germany’s sourcing and reduce reliance on single suppliers.
The agreement will also explore streamlining public investment to support critical raw materials projects, complementing existing efforts to encourage private sector investment. Furthermore, Canada and Germany intend to better coordinate support and insurance for strategically important projects, actively participating in international initiatives concerning these materials. Facilitating commercial partnerships, research collaboration and engagement with Indigenous partners between German and Canadian entities – including businesses, financial institutions and research organizations – is also a key component.
Jens Honnen, an expert in international energy policy at Adelphi, commented to POLITICO that the letter of intent is a significant step towards deepening political cooperation in the raw materials sector and broadening Germany’s import base. He emphasized the importance of securing commitment from businesses and driving investment into tangible projects to fully realize the potential of this partnership.
