German Chancellor Friedrich Merz is set to receive Canadian Prime Minister Mark Carney on Tuesday for discussions centered on strengthening resource cooperation between the two nations. A letter of intent regarding critical raw materials is expected to be unveiled during the morning’s proceedings.
According to reports from POLITICO, citing analysis from the consultancy firm Adelphi, the agreement will outline five key objectives. Adelphi is currently implementing Germany’s energy partnership with Canada on behalf of the Federal Ministry for Economic Affairs and Climate Action.
The core of the collaboration will focus on enhancing trade and cooperation throughout the value chain for critical raw materials, with a particular emphasis on technologies used in processing, refining and recycling. Both countries will prioritize joint efforts concerning lithium, rare earth minerals, copper, tungsten, gallium, germanium and nickel – resources available in Canada and of strategic interest to Germany. This initiative aims to diversify Germany’s supply chains and reduce reliance on single sources.
The letter of intent also proposes streamlining public investment to support projects related to critical raw materials, complementing efforts to attract private investment. Furthermore, Canada and Germany intend to better coordinate support and insurance for strategic projects, actively participating in international initiatives focused on critical raw materials. The agreement will encourage commercial partnerships and research cooperation between businesses, financial institutions, research organizations and Indigenous partners in both countries.
Jens Honnen, an expert in international energy policy at Adelphi, told POLITICO that the joint letter of intent represents an important step toward deepening political cooperation in the raw materials sector and broadening Germany’s import base. He emphasized that the success of this initiative will depend on active participation from the private sector and concrete investment in specific projects.