Canada has selected German defence company TKMS to build a new fleet of 12 submarines in what the government says is the largest military procurement project in the country's history.

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Prime Minister Mark Carney announced the decision on Monday, saying the government would begin negotiations with TKMS on a contract that could take several months to finalise. The government has not disclosed the value of the deal.

Arctic security drives major defence investment

The announcement comes ahead of Carney's trip to a Nato summit in Turkey, where member states are expected to face renewed pressure to increase defence spending. Since taking office, Carney has raised Canada's defence spending to 2% of gross domestic product (GDP) and has pledged to increase it to 5% by 2035.

Replacing an ageing submarine fleet

The new submarines will replace Canada's ageing Victoria-class fleet, which was purchased in 1998. According to the government, only one of the country's four existing submarines is currently seaworthy.

Canada says the conventionally powered vessels will be capable of operating beneath Arctic ice, strengthening the country's ability to protect its maritime territory. With the world's longest coastline, Canada has become increasingly concerned that climate change is making Arctic waters more accessible, creating new security challenges.

"In a more dangerous and divided world, Canada must be prepared to defend our interests, protect our citizens, build our economy, and secure our future," Carney said.

He added that the project would also expand Canada's industrial capacity rather than simply provide new military equipment.

German bid chosen over South Korean rival

TKMS, the world's largest manufacturer of non-nuclear submarines, was selected over South Korean shipbuilder Hanwha Ocean after a competitive bidding process.

Canada launched the procurement programme in July 2024, with Carney promising to select a contractor by June to accelerate the replacement of the existing fleet.

TKMS said its proposal, developed in partnership with Norway, offered Canada a low-risk, Nato-compatible solution while providing opportunities for shared maintenance, repairs, logistics, training and operational cooperation.

Defence spending and strategic partnerships

David Perry, president of the Canadian Global Affairs Institute, said the contract strengthens Carney's claim that his government is moving quickly to increase defence investment.

He said the procurement had advanced at an unusually rapid pace by Canadian standards and reflected the government's commitment to modernising the armed forces.

Perry also said Canada appeared to have prioritised building a long-term strategic partnership with a European ally as Ottawa seeks closer economic and security ties with Europe amid ongoing trade tensions with the United States.

He added that the expanded fleet would significantly improve Canada's naval capabilities, allowing about three submarines to be operational at the same time. That would represent a substantial improvement over recent years, when Canada has often had only one submarine available for service.

The government says the new under-ice submarines will play a vital role in protecting Canada's sovereignty and securing its extensive coastline for decades to come.

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Adapted by ASEAN Now. Source 7 July 2026

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Canada’s sub deal is a reminder of how clean procurement can look when you pick a proven platform. TKMS and Norway offer a “low‑risk, NATO‑compatible” package with shared maintenance, repairs, logistics, training. Basically an off‑the‑shelf ecosystem Canada can plug straight into.

Compare that with Australia’s AUKUS "unclear" submarines, where timelines, designs, industrial plans and even basic delivery logic still feel like they’re floating somewhere between Canberra press releases and Trump mood swings.

Canada gets a conventional fleet that works under Arctic ice and a support network already running across NATO. Australia gets a decades‑long nuclear science project with moving goalposts.

Canada’s approach may seem boring, predictable, and functional, but it's exactly what defence procurement should be. Australia’s is ambitious, geopolitical, and very, very unclear!

15 hours ago, webfact said:

new fleet of 12 submarines

Instead of being U-Boats Canada will have My-Boats.

I wonder whether whoever pushed NATO to increase defence spending was expecting money to be spent on its own equipment?

It looks like more and more defence spending is going to European countries than might have been expected.

23 hours ago, webfact said:

"In a more dangerous and divided world, Canada must be prepared to defend our interests, protect our citizens, build our economy, and secure our future," Carney said.

You think that comment was aimed at Canada's neighbour to the south.

A fleet of 12 submarines! I'd say Canada is preparing for war or preparing to support Europe in their war with Russia. Where does the money come from? I thought there was a debt crisis going on in Canada and the rest of the West!

I wonder if President Trump will release a statement praising Canada for this step towards spending 5% of GDP on defence?🤔

What about the Gripen?

10 hours ago, Maybole said:

What about the Gripen?

I'm not sure if the Gripen can operate under Arctic ice.

But the Swedish engineers are surely already working on it.

🤫Pssst, that's top secret...

Letter I wrote to the PM just today.

Dear Prime Minister:

From Lester Pearson’s day through Pierre Trudeau, Canada was known as peacemaker, conciliator, negotiator, compromiser in many of the world’s conflicts.

You are leading us, Mr. Carney. You are leading us hopelessly astray from peacemaker to warmonger. Can you in good conscience really support Mad King Donald…about anything?!?

Canada abstained from voting against a US invasion of Cuba?!? We need to raise Canada’s voice loud and clear that we will never support wars of aggression. Whatever were you thinking, Mr. PM?

Furthermore, I don’t want that $100B out of my pocket to buy 12 (!) attack submarines. Who are you planning to attack, Mr. PM?

A good first step is to get rid of NORAD. This outmoded system in no longer capable of warning us of a nuclear attack. Even if it could warn us, what could we do in minutes to seconds?

Canada has not supported Ukraine with effective weapons against Russia for the duration of Russia’s invasion. Countless lives were lost on both sides because of our, and NATO’s, inaction. So what do you think this $900M is going to do to support Ukraine.

Canadians are peacemakers. We don’t need NATO. We’ve never needed NATO.

It’s time to build peace not prepare for war. Think what those billions could do for Canadians.

For peace and freedom,

german submarines lol

How many ways can we waste tax payer's hard earned money. Who the hell is invading CA ?

29 minutes ago, unblocktheplanet said:

For peace and freedom...

Canada was never a warmonger. And - in my POV - will for sure not be as long as politicians like Trudeau and Mark Carney have and keep the lead.

Submarines are able to attack - but that's not the primary task for a country like Canada.

Deterrence, intelligence gathering and reconnaissance are the main tasks in peacetime.

"Si vis pacem, para bellum"

"If you want peace, prepare for war."

You can redirect your question for peace to Putin's Russia.

P.S.

Technically - what has Canada ordered...?

The currently developed 212 CD, and latest generation which are being built jointly with Norway.

They are specifically designed for challenging waters such as the North Atlantic and the Arctic. These vessels feature a diamond-shaped hull that reduces the sonar signature by up to 60%. In addition, they are equipped with modern lithium-ion batteries and powerful sensor systems.

8 hours ago, KhunLA said:

How many ways can we waste tax payer's hard earned money. Who the hell is invading CA ?

The US?

9 hours ago, unblocktheplanet said:

Letter I wrote to the PM just today.

Dear Prime Minister:

From Lester Pearson’s day through Pierre Trudeau, Canada was known as peacemaker, conciliator, negotiator, compromiser in many of the world’s conflicts.

You are leading us, Mr. Carney. You are leading us hopelessly astray from peacemaker to warmonger. Can you in good conscience really support Mad King Donald…about anything?!?

Canada abstained from voting against a US invasion of Cuba?!? We need to raise Canada’s voice loud and clear that we will never support wars of aggression. Whatever were you thinking, Mr. PM?

Furthermore, I don’t want that $100B out of my pocket to buy 12 (!) attack submarines. Who are you planning to attack, Mr. PM?

A good first step is to get rid of NORAD. This outmoded system in no longer capable of warning us of a nuclear attack. Even if it could warn us, what could we do in minutes to seconds?

Canada has not supported Ukraine with effective weapons against Russia for the duration of Russia’s invasion. Countless lives were lost on both sides because of our, and NATO’s, inaction. So what do you think this $900M is going to do to support Ukraine.

Canadians are peacemakers. We don’t need NATO. We’ve never needed NATO.

It’s time to build peace not prepare for war. Think what those billions could do for Canadians.

For peace and freedom,

Your neighbour to the south wants to annex you.

10 hours ago, unblocktheplanet said:

Letter I wrote to the PM just today.

Dear Prime Minister:

From Lester Pearson’s day through Pierre Trudeau, Canada was known as peacemaker, conciliator, negotiator, compromiser in many of the world’s conflicts.

You are leading us, Mr. Carney. You are leading us hopelessly astray from peacemaker to warmonger. Can you in good conscience really support Mad King Donald…about anything?!?

Canada abstained from voting against a US invasion of Cuba?!? We need to raise Canada’s voice loud and clear that we will never support wars of aggression. Whatever were you thinking, Mr. PM?

Furthermore, I don’t want that $100B out of my pocket to buy 12 (!) attack submarines. Who are you planning to attack, Mr. PM?

A good first step is to get rid of NORAD. This outmoded system in no longer capable of warning us of a nuclear attack. Even if it could warn us, what could we do in minutes to seconds?

Canada has not supported Ukraine with effective weapons against Russia for the duration of Russia’s invasion. Countless lives were lost on both sides because of our, and NATO’s, inaction. So what do you think this $900M is going to do to support Ukraine.

Canadians are peacemakers. We don’t need NATO. We’ve never needed NATO.

It’s time to build peace not prepare for war. Think what those billions could do for Canadians.

For peace and freedom,

As a fellow Canadian I think this purchase is long long overdue.

In today's world situation the ole Roman maxim has more relevance than ever

"If you shall have peace, prepare for War"

10 hours ago, KhunLA said:

How many ways can we waste tax payer's hard earned money. Who the hell is invading CA ?

Oh dont you worry...he's in Saudi right now trying to strike up more deals.

This should be a huge issue for Canadians..........

Crickets.

All warz are PHAKE - thas why it's called theater of war. There are good actors and bad actors.

Except the war on the plebs is real, by way of lifetime debt slavery with these billion dollar sub purchases, A.I. data centes for your destruction and other $$$ sinkholes.

Are you getting it or what?

1 hour ago, Woke to Sounds said:

All warz are PHAKE - thas why it's called theater of war. There are good actors and bad actors.

Except the war on the plebs is real, by way of lifetime debt slavery with these billion dollar sub purchases, A.I. data centes for your destruction and other $$$ sinkholes.

Are you getting it or what?

When it comes to wars, the only grounds throughout history has been imperialism cloaked in moral virtue. They're all bad actors!

The war on the plebs worldwide is the real war. That war is not only conducted in wasted dollars but wasted lives, both dying and living.

The buzz is that NATO/EU is shading the US, which is now more chummy with Putin than with the former Western alliance allies. With the way the current POTUS speaks and behaves I can see why. And now Canada has joined them. Buy armaments from a country that wants to annex you? "Think we're stupid, eh?" When they need parts etc Uncle Sam can step in with "I need a favor though . . .."

To quote a Great Canadian "take off, hoser!"

On 7/8/2026 at 6:01 PM, Geoff914 said:

You think that comment was aimed at Canada's neighbour to the south.

Probably in part. But Canada at present is not able to defend its arctic territory. Russia is a menace in that area, so I think his comment had a broader meaning than just the US.

16 hours ago, KhunLA said:

How many ways can we waste tax payer's hard earned money. Who the hell is invading CA ?

It's mostly about Russia I think. Canada, at present, is not able to defend its sovereign territory in the arctic. The US has also said in past that it doesn't fully recognize Canada's claim to the whole area. So the arctic is a multinational hot potato, but it is Canadian territory (and only Canadian territory) including 200 mile limits.

On 7/8/2026 at 10:41 PM, Maybole said:

What about the Gripen?

I bet Carney goes half way with each (F-35 and Grippen). While the US military has a good argument that Canada's NORAD contingent should have the same platforms as the US (F-35), Canada needs aircraft for non-NORAD capability and threats too.

Edited July 10Jul 10 by ronnie50

There was also something in the news yesterday about Aus/NZ working with Japan for coming up with armed patrol boats. Again, distancing from the US.

1 hour ago, ronnie50 said:

It's mostly about Russia I think. Canada, at present, is not able to defend its sovereign territory in the arctic. The US has also said in past that it doesn't fully recognize Canada's claim to the whole area. So the arctic is a multinational hot potato, but it is Canadian territory (and only Canadian territory) including 200 mile limits.

IMO the DT thing about Greenland was Arctic Sea navigation that Putin wants. Vlad dearest gets his way in this WH.

Have a look at the top of the globe. Between a melting polar cap and icebreaking ships Canada could get some intruders on the northern shores.

On 7/8/2026 at 10:41 PM, Maybole said:

What about the Gripen?

I'm not sure if Gripen is a submarine 😳