Canada and Germany Forge Stronger Ties Through Submarines and Minerals

Canada and Germany are deepening cooperation on critical minerals and defense systems, with a German-Norwegian partnership emerging as a contender for Canada's new submarine program. This strengthens their alliance in response to global trade tensions and security threats, with both nations focusing on developing essential resources for clean energy and advanced manufacturing.

The Canadian Prime Minister announced Tuesday that a German-Norwegian partnership is among the frontrunners for Canada's new submarine program, as Ottawa and Berlin agreed to bolster their collaboration on critical minerals.

Such minerals, including lithium and rare earth elements, are vital for defense and clean energy systems. Germany, largely reliant on imports, seeks to collaborate with Canada's modest production capabilities to counteract China's global dominance in mineral mining and refining. China's export restrictions have disrupted supply chains affecting multiple industries, exacerbating pressure amid global trade tensions and high energy costs due to the Ukraine crisis.

Canada and Germany are exploring new avenues for energy supply, with Canadian LNG seen as a potential resource amidst Germany's post-Russian gas import challenges. Investment in joint mineral processing and infrastructure projects is planned, including partnerships like Troilus Gold's collaboration with Hamburg's Aurubis AG for a rare-earth supply chain. Despite challenges like low hydrogen demand, the two nations are committed to enhancing trade and research collaborations.

(With inputs from agencies.)