Brazil, Germany sign agreement on critical minerals and rare earths

Brazil and Germany signed a joint declaration of intent on Monday (May 20) in Hannover to expand scientific and technological cooperation in the area of critical and strategic minerals, considered essential for the energy transition and the development of emerging technologies.

The agreement was signed during an official visit by President Luiz Inácio Lula da Silva, who met with German Chancellor Friedrich Merz.

The deal, signed between Brazil’s Ministry of Science, Technology and Innovation and Germany’s Federal Ministry of Research, Technology and Space, sets the basis for intensifying joint action in research, development and innovation across the entire production chain of these inputs.

Critical minerals are essential elements for modern technologies, defense and the energy transition, including the manufacture of batteries, solar panels and turbines, and their supply faces risks related to scarcity or dependence on a limited number of suppliers.

Brazil holds some of the world’s largest reserves of these raw materials. The issue was mentioned by Lula in remarks to journalists after his bilateral meeting with Merz. The Brazilian president stressed that mineral development should go beyond simply exporting raw materials.

“Our reserves also make us unavoidable players in the debate on critical minerals. We want to attract processing chains to Brazilian territory, without limiting ourselves to exclusionary exports. Collaboration in technology-intensive sectors is a priority for a country that does not want to be confined to the role of a mere commodity exporter,” he said.

Under the cooperation agreement, also referenced by Merz in his press remarks, Brazil and Germany pledged to further expand research, development and innovation in the areas of exploration, extraction and processing of critical minerals, including rare earths and other metals and minerals.

Both countries recognize the strategic importance of research, development and innovation in increasing value added along the critical and strategic minerals value chain, contributing to sustainable industrial development, technological sovereignty and the strengthening of domestic industrial capabilities.

The commitments include support for innovation, particularly among small and medium-sized companies in both countries, the launch of joint research, development and innovation projects for the responsible management of critical minerals, and exchanges of scientists and graduate-level technical personnel. The agreement also provides for the creation, still in 2026, of a new bilateral program for direct funding of institutions and companies in both countries.

Other agreements

In addition to the cooperation deal on critical minerals, Brazil and Germany adopted 14 other joint acts during Lula’s official visit to the European country.

Among them is a cooperation agreement to strengthen efforts against environmental crimes such as deforestation, wildlife trafficking, illegal fishing and illegal mining. Another agreement covers cooperation in artificial intelligence, with a focus on digital government and industrial applications.

The two sides also signed a letter of intent under which the German government proposes expanding contributions to Brazil’s Climate Change Fund, coordinated by the Brazilian government and operated by the National Development Bank. The aim is to finance projects, studies and initiatives focused on reducing greenhouse gas emissions and adapting to the effects of climate change in Brazil. On the German side, the country’s development bank, KfW, is expected to contribute about 500 million euros to the fund.

The two governments also signed cooperation documents in areas including defense, ocean research, support for micro and small businesses, aerospace research, quantum technologies and the circular economy.

On his second official trip to Germany during his current term, Lula was received with military honors in Hannover for his meeting with Merz. 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 in these times of so much change in the global order. We want to strengthen mutual benefit and expand our network. We want to be strong, like-minded partners,” the German chancellor said in his press statement.

In addition to the bilateral meeting, Lula spoke at the opening of Hannover Messe, the world’s largest industrial trade fair, which this year is highlighting Brazil. He also took part in a meeting with Brazilian and German business leaders, where he emphasized opportunities in the biofuels sector.

Source: Pedro Rafael Vilela, Agência Brasil

Sharing is caring!