Prime Minister Mark Carney announced on Monday that Canada is moving forward with the procurement of up to 12 submarines from German shipbuilder Thyssenkrupp Marine Systems (TKMS). This landmark deal, announced in Halifax, Nova Scotia, is being hailed as the largest defence procurement in Canadian history, with an estimated cost potentially reaching $100 billion over the lifespan of the vessels.
The selection of TKMS's Type 212CD submarine comes after a competitive bidding process that saw South Korea's Hanwha Ocean as the other finalist. Carney emphasized that the chosen platform is optimized for Arctic waters and is fully NATO interoperable, aligning with Canada's strategic defence priorities and commitments to its allies. The new fleet will ultimately replace the Royal Canadian Navy's aging Victoria-class submarines, which have faced significant maintenance challenges.
Canada's current Victoria-class submarines, acquired second-hand from the United Kingdom in the late 1990s, have experienced numerous issues, with only one often being operational at any given time. The new German-built submarines are expected to begin delivery in 2033, with the first four anticipated by 2034. Germany and Norway have reportedly agreed to make available production slots to expedite Canada's delivery timeline.
The procurement is also expected to generate substantial economic benefits across Canada, with TKMS pledging significant investments and job creation. Prime Minister Carney highlighted that this investment will strengthen Canada's defence industrial base, deepen partnerships with allies, and create new opportunities for Canadian businesses. The announcement precedes Carney's attendance at the upcoming NATO summit, where defence spending and collective security will be key discussion points among member nations.
