Germany and Canada have signed a joint declaration of intent to strengthen cooperation in the automotive and mobility sectors, covering areas including trade, battery production and hydrogen technologies, the German Federal Ministry for Economic Affairs and Climate Action said.
The agreement was signed by German Federal Minister for Economic Affairs Katherina Reiche and Canada’s Minister of Innovation, Science and Industry Mélanie Joly. It aims to expand bilateral industrial collaboration, foster sector development and increase dialogue among companies, research institutions and industry associations in both countries. A “Joint Cooperation Group on Automotive and Mobility” will be established to support these efforts.
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The declaration seeks to “expand bilateral industrial cooperation in strategic sectors—in particular, auto and battery manufacturing and critical minerals,” according to the ministry. It highlights the importance of the automotive and mobility industries for economic security, resilience and growth. German automakers and their subsidiaries already employ about 15,000 people in Canada.
Canada has a significant automotive manufacturing base despite lacking a domestic automaker, with production historically dominated by U.S. companies and suppliers. In recent years, Ottawa has sought to diversify partnerships, including agreements aimed at attracting electric vehicle investment and supporting imports of vehicles and components. The country also offers access to critical raw materials such as cobalt, graphite, lithium, nickel and copper, which are essential for battery production and other clean technologies. Germany and Canada signed a separate raw materials partnership in 2025.
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Several battery manufacturers have chosen Canada for North American facilities, including Volkswagen’s battery subsidiary PowerCo, supported by federal and provincial incentives. However, many projects were originally intended to supply the U.S. market, prompting efforts to broaden international cooperation.
Specific measures under the new agreement have not yet been announced, as the document is a non-binding declaration. The German ministry said the initiative reflects a broader commitment to cooperation in key industries.
“With this declaration of intent, Canada and Germany are sending a clear signal for closer partnership in key future industries. They reaffirm their commitment to jointly address geopolitical challenges and sustainably strengthen economic cooperation,” the ministry said.
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German Economy Minister Katherina Reiche said the partnership focuses on strengthening supply chains and advancing technology. “Combining strengths. Safeguarding supply chains. Promoting forward-looking technologies. Canada and Germany are committed to these three goals,” she said, adding that current geopolitical conditions require a coordinated response.
Canada’s Industry Minister Mélanie Joly said the agreement would support collaboration on electric vehicles, hydrogen mobility and critical minerals. “With this joint declaration, Canada and Germany are strengthening collaboration on EV and hydrogen mobility, advancing battery and critical minerals partnerships, and drawing high-value investment into communities across the country,” she said.