HANOVER, Germany, April 20 - Germany's chancellor highlighted Brazil's capacity to scale up shipments of critical metals while offering German technological support to do so.
At the Hanover industrial fair, Chancellor Friedrich Merz said there are "significant opportunities in the cost-effective extraction of certain metals required for e-mobility and wind turbines." He added that Germany stands ready to supply technological know-how and expertise to broaden bilateral cooperation in those areas.
Speaking alongside Chancellor Merz, Brazilian President Luiz Inacio Lula da Silva confirmed his country has expanded investment in critical minerals and rare earths. Lula cautioned, however, that his government will "not accept any models that reduce our country to mere resource extraction, serving only to meet demand from abroad."
The two leaders also discussed defence cooperation. Lula said Brazil is seeking to "ramp up defence cooperation with Germany" and that officials are "engaged in dialogue regarding strategic areas such as tanks, air defence and drones, as well as joint projects."
Officials from both countries were set to hold German-Brazilian government consultations later on Monday, according to the schedule noted at the event.
Context and market implications
The remarks frame potential collaboration across several industry segments explicitly mentioned by the leaders. The metals and mining sectors, as well as equipment and technology providers for e-mobility and wind turbines, are directly referenced by Merz's comments on extraction and technological support. Defence manufacturers and suppliers are implicated by Lula's reference to tanks, air defence and drones.
Both leaders emphasized different priorities: Merz focused on opportunities to expand extractive output with German technology assistance, while Lula underscored Brazil's insistence on avoiding arrangements that would leave the country solely as a raw-materials provider.
German-Brazilian government consultations were scheduled for later the same day, a procedural next step noted by the participants.
Quoted passages
"There are significant opportunities in the cost-effective extraction of certain metals required for e-mobility and wind turbines," - Germany's chancellor.
"We have expanded our investment in critical minerals and rare earths... we will not accept any models that reduce our country to mere resource extraction, serving only to meet demand from abroad," - Brazil's president.
The exchange at the Hanover industrial fair sets out positions rather than detailed agreements, with formal consultations to follow.