UPDATE 1-Merz touts Brazil's potential on critical metals, says Germany can supply technology

Germany Chancellor Friedrich ‌Merz said ​on Monday that Brazil had great potential to expand deliveries of critical ‌metals, adding that Germany can supply the technology.

"There are significant opportunities in the cost-effective extraction of certain metals required for ‌e-mobility and wind turbines," Merz said at the Hanover ‌industrial fair alongside Brazilian President Luiz Inacio Lula da Silva. "Germany is prepared to support Brazil with technological know-how and expertise in order ⁠to ​further expand ⁠these relations," he added.

Speaking via a translator, Lula said his country had expanded ⁠its investment in critical minerals and rare earths, but that ​his government would "not accept any models that reduce our ⁠country to mere resource extraction, serving only to meet demand from abroad." Lula ⁠added ​that Brazil was seeking to ramp up defence cooperation with Germany.

"We are engaged in dialogue regarding ⁠strategic areas such as tanks, air defence and drones, as well ⁠as ⁠joint projects," he said. German-Brazilian government consultations are due to take place later on Monday.