Canada has taken a major step toward modernizing its naval capabilities after Prime Minister Mark Carney announced that German shipbuilder Thyssenkrupp Marine Systems (TKMS) has been selected as the preferred supplier to negotiate the delivery of a new fleet of submarines for the Royal Canadian Navy (RCN).
The announcement, made Monday at Canadian Forces Base Halifax, marks the beginning of negotiations under the Canadian Patrol Submarine Project (CPSP), which the federal government describes as the largest defence procurement in Canadian history.
The new fleet will replace Canada’s aging Victoria-class submarines, only one of which is currently seaworthy, and strengthen the country’s ability to defend its vast coastline and Arctic sovereignty amid growing geopolitical tensions.
The government said the procurement comes at a time when climate change is rapidly transforming the Arctic, making the region more accessible while increasing strategic competition among global powers.
The selected submarine, the 212CD, is jointly developed by Germany and Norway and features ultra-low acoustic and magnetic signatures, making it one of the stealthiest conventional submarines in operation today. The vessels are designed to conduct Arctic patrols, underwater surveillance, special operations missions and integrate seamlessly with NATO forces.
Negotiations between the Government of Canada and TKMS are expected to conclude by the end of 2027, with the first four submarines scheduled for delivery in 2034. If negotiations fail, the government said South Korean shipbuilder Hanwha Ocean has been identified as the reserve supplier.
Prime Minister Mark Carney described the project as both a national security and economic investment.
“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. To that end, we are making the largest defence procurement in our nation’s history with speed, ambition, and discipline,” Carney said.
He added that the submarines would strengthen Canada’s military while creating long-term opportunities for Canadian workers.
“Canada’s next submarine fleet will secure our coastlines and waters, and their construction will have enormous, lasting benefits for Canadian industries and workers. Together with our German and Norwegian Allies, we will build at speed and scale to expand our strategic capabilities and create greater strategic autonomy. We will build this fleet to build Canada strong.”
National Defence Minister David McGuinty said the new submarines will significantly improve the Royal Canadian Navy’s operational capabilities while generating economic benefits nationwide.
“Today’s decision will provide the Royal Canadian Navy a critical capability, ensuring we can defend and secure Canada’s vast coastline. From coast to coast to coast, this historic investment in the Canadian Armed Forces will bring strong economic benefits and jobs across the country.”
Industry Minister Mélanie Joly said the project extends beyond military modernization by supporting Canada’s industrial base and domestic supply chains.
“This historic submarine procurement represents more than an investment in Canada’s security – it is an investment in Canadians. By leveraging the Industrial and Technological Benefits Policy, we are creating good-paying jobs, strengthening domestic supply chains, supporting Canadian businesses and innovators, and delivering long-term economic benefits across the country.”
The project will advance under Canada’s Build-Partner-Buy framework and forms part of the country’s broader Defence Industrial Strategy, which aims to increase collaboration with trusted allies while maximizing industrial and technological benefits for Canadian businesses.
Secretary of State for Defence Procurement Stephen Fuhr said the selection process demonstrated the government’s efforts to accelerate military procurement without compromising fairness or competitiveness.
“Today’s announcement demonstrates that Canada can move at the speed of relevance. Completing a competitive process of this scale in roughly eight months, while maintaining a rigorous and fair evaluation, is an important milestone in modernising defence procurement.”
Fuhr said the evaluation considered both operational capability and long-term economic value.
“It reflects an understanding that national security and economic security go hand in hand. We evaluated proposals on their ability to deliver world-class capability to the Royal Canadian Navy, and on the long-term benefits they will create for Canadian workers, industry, and innovation through our Build-Partner-Buy approach.”
He noted that naming both a preferred supplier and a reserve supplier strengthens the program’s resilience.
“Finally, this process identified two highly credible solutions. By naming both a preferred supplier and a reserve supplier, we’ve strengthened the resilience of this program and positioned Canada to deliver this critical capability faster and with greater confidence.”
The submarine program represents one of the most significant military investments undertaken by Canada in decades. Beyond replacing an aging fleet, the project is expected to strengthen Canada’s presence in the Arctic, enhance underwater surveillance across the Atlantic, Pacific and Arctic oceans, deepen defence cooperation with NATO allies, and support thousands of jobs through investments in Canadian industry and supply chains.
With negotiations now underway, the Canadian Patrol Submarine Project enters a critical phase that will shape the future of the Royal Canadian Navy and Canada’s defence posture for decades to come. The government says the new fleet will provide the capabilities needed to safeguard Canada’s sovereignty while supporting allied operations in an increasingly complex global security environment.
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