Germany and Canada Forge Closer Ties in Automotive and Clean Mobility Sectors

Germany and Canada are deepening their collaboration in the automotive and mobility industries, with a focus on securing supply chains, promoting innovation, and accelerating the transition to zero- and low-emission vehicles. The partnership, formalized through a joint declaration of intent signed on February 23, 2026, by German Federal Minister for Economic Affairs Katherina Reiche and Canadian Minister of Industry Mélanie Joly, aims to bolster economic security and growth in both nations.

Strategic Importance of the Automotive Sector

The declaration underscores the strategic significance of the automotive and mobility sectors for economic security, resilience, and growth in both Canada and Germany. The agreement seeks to strengthen the industrial base, diversify and stabilize supply chains, and expedite the adoption of zero- and low-emission vehicles . German automotive companies and their subsidiaries currently provide approximately 15,000 high-grade jobs in Canada .

Key Areas of Cooperation

The collaboration will focus on several key areas:

• Automotive Trade: Expanding bilateral trade in automobiles and automotive components.
• Battery Technology: Advancing partnerships in battery technology and critical minerals supply chains.
• Hydrogen Mobility: Strengthening cooperation in the development and deployment of hydrogen-powered vehicles.
• Electric Vehicle (EV) Development: Collaborating on electric mobility solutions.

A Response to Geopolitical Challenges

Federal Minister Reiche emphasized the demand for a strategic response to current geopolitical challenges, stating, “Combining strengths. Safeguarding supply chains. Promoting forward-looking technologies – Canada and Germany are committed to these three goals.” She added that the partnership sends a clear signal for economic security, technological sovereignty, and growth on both sides of the Atlantic.

Canadian Minister Joly highlighted Canada’s strengths in the automotive sector, noting the country’s world-class workforce and innovative capabilities. She stated that the declaration will strengthen collaboration on EV and hydrogen mobility, advance battery and critical minerals partnerships, and attract investment into communities across Canada .

Joint Cooperation Group

To facilitate the implementation of the agreement, a “Joint Cooperation Group on Automotive and Mobility” will be established. This group will focus on intensifying dialogue between companies, research institutions, and industry associations in both countries, and on sectoral development .

Canada’s Shifting Partnerships

This agreement comes as Canada seeks to diversify its partnerships in the automotive industry, particularly in light of past trade challenges with the United States . The move aims to modernize the Canadian automotive industry and create new employment opportunities.

The partnership between Germany and Canada signals a commitment to a closer relationship in key future industries and a shared determination to address geopolitical challenges while strengthening economic cooperation .