Finance
Merz Touts Brazil's Potential on Critical Metals, Says Germany Can Supply Technology
Published by Global Banking & Finance Review®
Posted on April 20, 2026
2 min readLast updated: April 20, 2026
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Germany’s Chancellor Friedrich Merz highlighted Brazil’s vast potential in critical metals—especially for e‑mobility and wind energy—and offered German technological support, while President Lula stressed Brazil’s desire for value‑added development, not mere raw export, and signaled expanded defence
Germany Eyes Tech Collaboration as Brazil Ramps Up Critical Metals Investment
Germany and Brazil Strengthen Ties in Critical Metals and Technology
Germany's Offer of Technological Support
HANOVER, Germany, April 20 (Reuters) - Germany Chancellor Friedrich Merz said on Monday that Brazil had great potential to expand deliveries of critical metals, adding that Germany can supply the technology.
"There are significant opportunities in the cost-effective extraction of certain metals required for e-mobility and wind turbines," Merz said at the Hanover industrial fair alongside Brazilian President Luiz Inacio Lula da Silva.
"Germany is prepared to support Brazil with technological know-how and expertise in order to further expand these relations," he added.
Brazil's Investment Strategy in Critical Minerals
Brazil's Stance on Resource Extraction
Speaking via a translator, Lula said his country had expanded its investment in critical minerals and rare earths, but that his government would "not accept any models that reduce our country to mere resource extraction, serving only to meet demand from abroad."
Expanding Defence Cooperation
Lula added that Brazil was seeking to ramp up defence cooperation with Germany.
Strategic Areas of Collaboration
"We are engaged in dialogue regarding strategic areas such as tanks, air defence and drones, as well as joint projects," he said.
Upcoming Government Consultations
German-Brazilian government consultations are due to take place later on Monday.
Reporting Credits
(Reporting by Andreas Rinke, Writing by Friederike Heine; editing by Matthias Williams)
Key Takeaways
- •Brazil holds world-leading reserves—largest niobium, second‑largest graphite and rare earths, third‑largest nickel globally—making it a strategic partner for sustainable supply chains in green technologies.(investing.com)
- •Brazil is building domestic value‑addition through increased investment in critical minerals and creating governance structures (e.g. National Council for New Mineral Materials) to retain economic benefits at home.(reutersconnect.com)
- •Germany signals it can provide the technological know‑how needed for cost‑efficient extraction and processing, reinforcing bilateral ties amid a shifting global critical‑minerals landscape.(investing.com)
References
Frequently Asked Questions about Merz touts Brazil's potential on critical metals, says Germany can supply technology
1What did Germany's Chancellor say about Brazil's critical metals sector?
Chancellor Friedrich Merz said Brazil has great potential to expand deliveries of critical metals and that Germany can supply supporting technology.
2How does Germany plan to support Brazil in extracting critical metals?
Germany is prepared to offer technological know-how and expertise to help Brazil cost-effectively extract metals needed for e-mobility and wind turbines.
3What was Brazil's stance on critical minerals extraction for foreign demand?
President Lula stated that Brazil will not accept models where the country only extracts resources for foreign demand and seeks added value.
4Are Brazil and Germany discussing any cooperation beyond minerals?
Yes, Brazil is looking to ramp up defence cooperation with Germany, discussing strategic areas such as tanks, air defence, and drones.
5When are German-Brazilian government consultations planned?
The government consultations between Germany and Brazil are due to take place later on the same Monday.