Canada and Germany to Work Together in Key Industrial Sectors
March 2, 2026
Joint declaration will increase collaboration in auto and mobility sector and battery supply chains
On February 23, 2026, 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 Canadian Government 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.
- The Canadian 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.
- The Canadian 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.
Related Story
Canada Advances New Auto Strategy by Expanding EV Charging Infrastructure Across the Country
On February 5, The Canadian Government announced its new Automotive Strategy: a suite of measures to protect and secure the auto industry while building a globally competitive automotive sector focused on next-generation vehicle manufacturing.
As part of this strategy, the Government is helping Canadians choose electric, with a new five-year Electric Vehicle Affordability Program and enhanced charging infrastructure through investments through the Canada Infrastructure Bank’s $1.5-billion Charging and Hydrogen Refuelling Infrastructure Initiative, so it is easier to purchase and drive an EV.