Canada and Germany Sign Landmark Auto and Battery Cooperation Deal in Berlin to Strengthen EV and Critical Mineral Supply Chains

A New Chapter for Canada–Germany Industry Ties.

Berlin set the stage for a significant economic moment this week. On February 24, 2026, Canada and Germany took a decisive step toward deepening industrial cooperation, with a strong focus on the rapidly evolving auto and clean energy sectors.

During her visit to the German capital, the Honourable Mélanie Joly signed a joint declaration of intent alongside Katherina Reiche, Germany’s Federal Minister for Economic Affairs and Energy.

The agreement signals a coordinated push to expand collaboration in automotive manufacturing, battery production, hydrogen technologies, and critical minerals.

While the announcement may read like standard diplomatic language, the substance behind it carries long-term strategic weight.

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Why the Auto Sector Is Front and Centre

At the heart of the declaration lies the automotive industry—a sector both countries treat as foundational to their economies.

Germany, home to globally recognized automakers such as Volkswagen, BMW and Mercedes-Benz, has been aggressively shifting toward electric mobility.

Canada, meanwhile, has positioned itself as a key player in North America’s EV and battery ecosystem, buoyed by abundant reserves of lithium, nickel, cobalt and graphite—materials essential for modern battery production.

The new declaration expands bilateral trade in hydrogen-powered vehicles and electric vehicles (EVs). It also opens the door for companies from both countries to increase their footprint in each other’s automotive markets.

That means more joint ventures, shared supply chains and potentially new production facilities on both sides of the Atlantic.

Canada’s recently unveiled automotive strategy—designed to attract large-scale EV and battery investment—aligns neatly with Germany’s industrial ambitions.

Both governments are clearly betting that electrification is not just an environmental imperative, but an economic one.

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Batteries and Critical Minerals: The Real Strategic Play

Behind every EV is a battery. And behind every battery is a complex web of mining, processing and manufacturing.

This agreement places strong emphasis on critical minerals supply chains. Canada holds some of the world’s most sought-after deposits of battery materials, while Germany brings advanced manufacturing expertise and established industrial infrastructure.

By linking Canadian resource strength with German manufacturing depth, both countries aim to reduce reliance on unstable or concentrated supply sources.

In recent years, global supply chain disruptions have exposed vulnerabilities in everything from semiconductor chips to rare earth elements. Diversification is no longer optional—it’s strategic insurance.

The declaration also reinforces collaboration on the clean energy transition and energy security, areas that have become even more urgent as Europe works to stabilize and modernize its energy systems.

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Hydrogen: A Quiet but Powerful Addition

While electric vehicles dominate headlines, hydrogen mobility remains a serious focus in Germany’s industrial policy. The inclusion of hydrogen-powered vehicle trade and cooperation suggests that both countries are keeping multiple clean transportation pathways open.

Germany has invested heavily in hydrogen infrastructure and research, viewing it as critical for decarbonizing heavy industry and long-haul transport.

Canada, with its vast renewable energy potential, could become a competitive producer of clean hydrogen for both domestic use and export.

In other words, this isn’t just about cars—it’s about reshaping energy systems.

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Impact and Consequences

The immediate impact of the declaration is diplomatic momentum. But economically, the potential consequences are broader:

• Supply chain strengthening: A more integrated Canada–Germany battery and EV ecosystem reduces exposure to geopolitical disruptions.
• Increased foreign direct investment: German firms may deepen investments in Canadian battery plants and mineral processing facilities, while Canadian companies could gain stronger access to European markets.
• Job creation: Expanded production and mining operations mean skilled trades, engineering and technology jobs in both countries.
• Technological spillovers: Cross-border R&D collaboration could accelerate innovation in battery efficiency, hydrogen storage and vehicle design.
• Economic resilience: By diversifying trade partnerships, Canada reduces overdependence on any single market.

There are also competitive implications. A stronger transatlantic partnership in EVs may intensify global competition with U.S. and Asian manufacturers. But that competition can drive innovation and productivity gains.

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What’s Next?

A declaration of intent is not a binding treaty—it’s a framework. The real work begins now.

Expect to see:

• Formal working groups to align regulatory standards and technical specifications.
• Increased collaboration between research institutions and private-sector leaders.
• Targeted investment announcements in battery plants, mineral processing and EV assembly.
• Trade missions and industrial forums to connect companies on both sides.

Monitoring implementation will be key. The success of this partnership will depend on how quickly businesses convert political intent into concrete projects.

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Canada’s Identity as an Auto Nation

Canada has long considered itself an automotive country. From assembly lines in Ontario to emerging battery hubs in Quebec and the Prairies, the sector remains a pillar of manufacturing employment.

Strategic investments over the past few years have aimed to modernize that foundation rather than defend legacy production alone. The Canada–Germany declaration reinforces that approach: protect existing jobs while building next-generation capacity.

Germany, similarly, is navigating its own industrial transformation—balancing traditional automotive strengths with the urgent shift to electrification and digital mobility.

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Summary

Canada and Germany have signaled a clear intent to tighten industrial ties in automotive manufacturing, battery production, hydrogen mobility and critical minerals.

The agreement aligns with both nations’ economic and energy strategies, emphasizing supply chain security, clean technology leadership and long-term resilience.

If implemented effectively, this collaboration could shape the future of transatlantic EV and clean energy cooperation—while creating jobs and attracting investment on both sides.

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Bulleted Takeaways

• Canada and Germany signed a joint declaration to deepen cooperation in auto, battery and critical minerals sectors.
• The agreement expands trade in electric and hydrogen-powered vehicles.
• Critical mineral supply chain collaboration is a central pillar of the partnership.
• The deal supports Canada’s automotive strategy and Germany’s clean mobility goals.
• Increased investment, job creation and stronger supply chains are expected outcomes.
• Hydrogen technology is emerging as a complementary focus alongside EVs.
• The next phase will involve regulatory alignment, business partnerships and concrete investment projects.