Canada Picks TKMS for 12 Submarines in C$20 Billion-Plus Defence Deal
Updated
Updated · Al Jazeera English · Jul 6
Canada Picks TKMS for 12 Submarines in C$20 Billion-Plus Defence Deal
3 articles · Updated · Al Jazeera English · Jul 6
Summary
Canada chose Germany’s TKMS, bidding with Norway, to supply up to 12 submarines in what Ottawa called the country’s largest-ever defence procurement.
The order is meant to replace Canada’s four ageing submarines and bolster strategic autonomy as Ottawa faces a more dangerous security environment and pressure to raise military spending.
The contract is to be finalized by the end of 2027 at the latest, with the first four boats expected by 2034; TKMS has said it wants a deal signed by year-end.
The Globe and Mail valued the submarines at C$20 billion to C$30 billion, with lifetime operations, maintenance and upgrades potentially lifting the total to C$40 billion-C$50 billion.
The selection of the German-Norwegian bid over South Korea’s Hanwha Ocean comes as Canada reaches NATO’s 2% spending target early and allies aim for 5% by 2035.
Will Canada's $100B choice reinforce NATO ties or pivot its strategic focus to the Pacific?
Which nation's promise of faster delivery and greater economic impact will win Canada's historic contract?
Canada’s $60 Billion Submarine Decision: Strategic Stakes, Industrial Impact, and the Race Between Hanwha Ocean and TKMS
Overview
Canada is approaching a major decision on its future naval strength, with an announcement on the Canadian Patrol Submarine Project (CPSP) expected before July 7, 2026. This project, valued at up to C$60 billion, will shape the Royal Canadian Navy’s submarine fleet for decades and have significant impacts on national security and industrial growth. The competition has narrowed to Hanwha Ocean and TKMS, with each offering advanced submarine proposals. The outcome of this decision will define Canada’s maritime capabilities and influence its strategic and economic future.