










Canada eyes deeper energy ties with Germany through critical minerals partnership


🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source



Canada and Germany Forge Critical‑Minerals Partnership to Accelerate Energy Transition
By [Your Name] – 26 August 2025
In a move that signals a tightening of North‑South ties around the world’s most sought‑after raw materials, Canada and Germany announced a new critical‑minerals partnership at the Canada‑Germany Business Summit in Ottawa last month. The collaboration, formalised through a Memorandum of Understanding (MoU) signed by Canada’s Minister of Energy, Mines and Resources and Germany’s Minister for Economic Affairs and Climate Action, aims to secure a steady supply of lithium, cobalt, nickel, and rare‑earth elements that underpin everything from electric‑vehicle (EV) batteries to high‑tech electronics.
A Growing Demand for “Critical” Resources
The shift to low‑carbon economies has created a surge in demand for the minerals that power batteries, wind turbines, and solar panels. The European Union’s Critical Raw Materials Strategy, adopted in 2020, estimates that the bloc will need to secure an additional 300 kt of lithium and 200 kt of cobalt by 2030 to meet its decarbonisation targets. Germany, the EU’s largest economy, has pledged to double its domestic battery‑material production and to diversify its supply chains away from China, which currently dominates the global market.
Canada is well‑placed to fill that void. According to the Canadian government’s 2023 Critical Minerals Strategy, the country holds roughly 30 % of the world’s lithium reserves, 60 % of global rare‑earth deposits, and significant deposits of cobalt and nickel in provinces such as Saskatchewan, Quebec, and the Northwest Territories. Moreover, Canada’s transparent regulatory framework and commitment to responsible mining make it an attractive partner for European firms looking to ensure ethical sourcing.
The Partnership on Paper
Under the MoU, the two governments will establish a joint advisory committee that will meet annually to assess market trends, coordinate research initiatives, and streamline regulatory approvals for Canadian projects that are of interest to German industry. The partnership also includes a joint investment fund, jointly overseen by the Canadian Investment Development Agency and Germany’s Federal Ministry for Economic Affairs, which will provide seed capital for exploration and early‑stage development of critical‑minerals projects in Canada.
“We are excited to strengthen our relationship with Germany on an issue that sits at the heart of the energy transition,” said Canada’s Minister of Energy, Mines and Resources. “By aligning our strategies, we can deliver reliable, sustainable supply chains that will support both our economies and our shared climate goals.”
Germany’s counterpart echoed this sentiment: “Germany’s automotive and industrial sectors need stable, high‑quality supplies of lithium, cobalt, nickel and rare‑earth elements. Canada’s proven track record in responsible mining and its strategic reserves make it the ideal partner for achieving a secure supply chain.”
Beyond Mining: Innovation and Recycling
The partnership is not limited to upstream extraction. Both governments have identified the importance of downstream innovation—particularly battery design, recycling, and carbon‑neutral processing. Canadian research institutes, such as the University of British Columbia’s Centre for Electrochemical Innovation, will collaborate with German partners like Fraunhofer Institute for Energy System Technology to develop new battery chemistries that reduce cobalt usage and improve energy density.
Recycling has also emerged as a key pillar. The MoU includes provisions for joint pilot projects that will test advanced recycling technologies capable of recovering rare‑earths and other valuable metals from end‑of‑life EV batteries. This would help both countries move closer to a circular economy model, reducing the need for virgin extraction and lowering environmental footprints.
Economic Implications
The economic upside for Canada is substantial. The critical‑minerals sector is projected to generate over $30 bn in Canadian GDP by 2035, according to the Canadian Ministry of Industry. German firms—ranging from automotive giants such as Volkswagen and BMW to battery manufacturers like Bosch and VARTA—have already expressed interest in investing in Canadian mining projects. Early indications suggest that the partnership could unlock up to $10 bn in foreign direct investment (FDI) for Canada over the next decade.
Job creation is another expected benefit. Canadian mining companies anticipate that the partnership will spur the development of approximately 2,500 new jobs across the country, especially in remote communities that will host new mining or processing facilities. These jobs would not only support local economies but also provide critical expertise in sustainable mining practices.
Challenges and Next Steps
While the partnership promises significant gains, it also faces hurdles. Canadian mining companies will need to navigate a complex web of environmental assessments and Indigenous land‑use agreements, which can delay project timelines. Germany, for its part, must reconcile its own supply‑chain security goals with its commitment to free trade and open markets.
The next phase will involve the joint advisory committee conducting feasibility studies on specific projects, such as the proposed lithium‑ion battery‑material plant in Saskatchewan’s Athabasca Basin. The committee will also draft a framework for a cross‑border supply‑chain governance model that incorporates traceability, ESG compliance, and risk‑management protocols.
A Broader Trend
The Canada‑Germany critical‑minerals partnership is part of a wider global realignment. The United States, European Union, and Japan have all announced similar initiatives aimed at diversifying supply chains and reducing dependence on geopolitically unstable regions. In this context, Canada’s strategic location, robust mining sector, and strong diplomatic ties position it as a key partner for nations seeking to secure the building blocks of the green economy.
As the world’s demand for clean‑energy infrastructure accelerates, the partnership between Canada and Germany may well become a blueprint for how resource‑rich, responsible‑mining nations can collaborate with industrial powerhouses to shape a sustainable future.
Read the Full Toronto Star Article at:
[ https://www.thestar.com/business/canada-eyes-deeper-energy-ties-with-germany-through-critical-minerals-partnership/article_054d9800-c8ba-5a23-a78a-a240d239a137.html ]