February 24, 2026 – Berlin, Germany
Yesterday, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, signed a landmark joint declaration of intent with her German counterpart, Katherina Reiche, Minister for Economic Affairs and Energy, to expand bilateral industrial cooperation in strategic sectors—in particular, auto and battery manufacturing and critical minerals.
The declaration, signed during a visit to Berlin by Minister Joly, specifically expands bilateral trade and exports of hydrogen-powered and electric vehicles (EVs) and the prospect of increased presence in each other’s automotive sectors. The declaration is in line with Canada’s new automotive strategy, which will catalyze massive new investment in the sector and position Canada as a global leader in EVs.
This joint declaration will also enhance the partnership between the two countries, strengthen the automotive supply chain and advance cooperation on critical minerals supply chains, clean energy transition and energy security. Through the expansion of this collaboration, the Government of Canada is diversifying the country’s economy, attracting new investments that will create new opportunities and well‑paying jobs for Canadians, and building economic resilience for years to come.
Canada is an auto nation and will continue to be so, thanks to the government’s strategic investments to protect jobs and strengthen the auto sector across the country.
Quotes
“Canada is a proud auto nation, backed by world class workers, leading-edge innovation and vehicles that rank among the best produced anywhere. 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. This agreement will help grow and modernize Canada’s auto sector, create good jobs nationwide and reinforce our role as a global leader in next-generation vehicle manufacturing.”
The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
“Combining strengths. Safeguarding supply chains. Promoting forward-looking technologies. Canada and Germany are committed to these three goals. The geopolitical challenges of our time demand a strategic response. Together, we are sending out a clear signal—for economic security, for technological sovereignty and for a fresh stimulus to growth on both sides of the Atlantic.”
Katherina Reiche, German Minister for Economic Affairs and Energy
Quick facts
In 2024, two-way merchandise trade reached $30.5 billion, positioning Germany as Canada’s sixth-largest merchandise trading partner and the largest among European Union (EU) member states.
Canada’s automotive sector is built on nation-to-nation collaboration. Canada has maintained a long and successful history of partnership with the U.S., Mexico and Japan and, more recently, has established new partnerships with companies from Germany and the Republic of Korea to build out a battery supply chain.
Canada’s automotive industry is a cornerstone of the economy. The sector contributed $16.8 billion to Canada’s GDP in 2024 and is one of the country’s largest manufacturing and export industries.
In 2024, the industry directly employed more than 125,000 people and indirectly supported approximately 427,000 jobs in Canada, including through aftermarket services and dealership networks.
Noah Note: After the Korean agreement the other week it was bound to be that the Germans would soon follow. The Federal government is commited to securing automotive investments through CPSP and are fairly comfident it seems that they will get it.
Of course as it stands, despite bith agremeents, there is still no dorecy commitments to Invest in Canada’s automotive industry, certainly none to the creation of new automotive production capacity.
Negotiations like that are slow though. They take aignificsnt amounts of time. Even in spite ofnthe demand we might not know anything concrete until after a partner has been downselected.
So these agreements are nice, but we have to wait and see what the deliverables will actually be. I am not as confident.
Noah, did you write that note on your phone while jogging? I love your stuff, but sometimes it hurts to see all the typos, and you don't want to know what it does to the text to speech feature in Substack...