At the Hannover Messe industrial trade fair, German political leader Friedrich Merz signaled a deepening interest in Brazil’s vast reserves of critical minerals. Speaking alongside Brazilian President Luiz Inácio Lula da Silva, Merz underscored the South American nation’s potential to become a cornerstone of the global supply chain for the raw materials essential to the green energy transition.
The proposal outlines a strategic industrial exchange: German technological expertise in exchange for access to Brazilian resources. As Europe races to secure the lithium and rare earth elements required for electric vehicle batteries and wind turbines, Brazil represents a significant, largely untapped alternative to current dominant suppliers. Merz noted that "significant opportunities" exist in the economic extraction of these metals, provided the right infrastructure and technical knowledge are applied.
This potential partnership arrives as the global North increasingly prioritizes "friend-shoring"—the practice of building supply chains within allied nations to mitigate geopolitical risk. By offering knowledge and experience in advanced mining and processing, Germany aims to stabilize its own industrial future while positioning Brazil as a high-tech partner in the decarbonization of the global economy.
With reporting from InfoMoney.
Source · InfoMoney
