The deal was inked during an official visit by President Luiz Inácio Lula da Silva, who met with the European country’s Federal Chancellor, Friedrich Merz.
Critical minerals are essential to modern technologies, defense, and the energy transition, including the manufacture of batteries, solar panels, and turbines, and their supply faces risks of scarcity or dependence on a limited number of suppliers.
Brazil ranks among the countries with the largest reserves of these raw materials on the planet. Lula made the remark to reporters following his meeting with Merz. The Brazilian president emphasized that mineral extraction should go beyond simply selling raw materials.
“Our reserves also make us key players in the debate on critical minerals. We want to attract processing chains to Brazil, rather than rely solely on exports. Collaboration in technology-intensive sectors is a priority for a country that does not want to remain a mere commodity exporter,” he stated.
Under the cooperation agreement, also cited by Friedrich Merz in his press statement, Brazil and Germany pledge to expand research, development, and innovation in the exploration, extraction, and processing of critical minerals, including rare earths and other metals.
Both countries recognize the strategic importance of research, development, and innovation to increase value added along the value chains of critical and strategic minerals, contributing to sustainable industrial development, technological sovereignty, and stronger domestic industrial capabilities.
Commitments include support for innovation, particularly among small and medium-sized enterprises in both countries; the launch of joint research, development, and innovation projects for the responsible management of critical minerals; and exchanges of scientists and postgraduate technical staff. The agreement provides for the development, by 2026, of a new bilateral program to provide direct funding to national institutions and companies in both countries.
Alongside the critical minerals agreement, Brazil and Germany signed 14 other joint agreements during Lula’s official visit.
Among them is a cooperation agreement to strengthen the fight against environmental crimes such as deforestation, wildlife trafficking, and illegal fishing and mining. Another agreement covers cooperation in the field of artificial intelligence, with a focus on digital government and industrial applications.
On his second official trip to Germany during his current term, Lula highlighted that Brazil is one of the few countries with which Germany maintains a strategic partnership agreement, considered the highest level of diplomatic relations between nations.
“This closeness is more important than ever at a time of profound changes in the world order. We want to strengthen our mutual benefits and expand our network. We want to be strong partners with shared ideas,” said Friedrich Merz in a statement to the press.
In addition to the bilateral meeting, Lula delivered a speech at the opening of the world’s largest industrial trade fair, Hannover Messe, which is featuring Brazil this year. He also attended a meeting with Brazilian and German business leaders, where he highlighted opportunities in the biofuels sector.
Lula met for the first time with Portuguese President António José Seguro, who took office on March 9. After meeting the head of state at the National Palace of Belém, he had lunch with the head of government, Prime Minister Luís Montenegro, at the São Bento Palace.
“We can replicate initiatives like those of Embraer here in Portugal. It is the most successful example of a Brazilian company helping to build things in the country,” he said, addressing the prime minister.
Trade
Bilateral trade between Brazil and Portugal totaled USD 4.5 billion in 2025. Brazil recorded a trade surplus of USD 2 billion.
In addition to the aerospace industry, Brazilian companies have investments in Portugal in the steel, machinery, and equipment sectors.
For its part, Portugal is a major supplier of oil and gas to Brazil and has investments in infrastructure and the electricity sector.
During the visit, the presence of the Brazilian community in Portugal was also discussed. The Portuguese prime minister noted that “Brazilians who come to Portugal - who now number more than 500,000 - have come to work, to pursue their goals, and have achieved a high level of social and economic integration.”
Montenegro acknowledged, however, that there have been incidents involving Brazilians in Portugal, adding that, in his view, these are isolated cases.
“This does not mean there have not been, here and there, isolated disturbances,” he stated.
The number of Brazilians in Portugal is about five times greater than that of Portuguese in Brazil - 104,000, according to the 2022 IBGE Census - making them the second-largest group of foreigners in Brazil.
Outside the Belém Palace, Brazilian and Portuguese protesters both for and against President Lula gathered throughout the day. According to Rádio e Televisão de Portugal (RTP), the groups were kept apart by police barriers and tape, and no clashes were reported.
Lula’s visit to Portugal coincides with Tiradentes Day, April 21. The holiday honors the martyr of the Inconfidência Mineira - an 18th-century independence movement and a symbol of the struggle for freedom and independence in Brazil, a former Portuguese colony.
Lula’s trip to Lisbon followed visits to Spain on April 17 and 18 and to Germany on April 19 and 20. The president returned to Brazil on Tuesday (21).
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