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Brazil, Germany ink deal on critical minerals, rare earths
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.
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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.
Other agreements
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.
