Canada picks German company TKMS to build new fleet of submarines
Canada has chosen a German defense company to build its navy’s new submarine fleet in the largest military procurement deal in Canadian history.
Prime Minister Mark Carney announced on Monday that the government has selected TKMS for the multibillion-dollar 12-ship contract.
The announcement comes just before Carney departs to attend the NATO summit in Türkiye, where members are expected to face pressure to show they are increasing defense investment. Since taking office, Carney has increased Canada’s defense spending to 2% of gross domestic product (GDP) and has pledged to reach 5% by 2035.
Only a quarter of Canada’s submarines are currently seaworthy, according to the government.
The country with the world’s longest coastline is increasingly concerned that climate change will warm Arctic waters and open new fronts for enemies to attack.
“In a more dangerous and divided world, Canada must be ready to defend our interests, protect our citizens, build our economy and secure our future,” Carney said. he said. “For this purpose, we are carrying out the largest defense purchases in our nation’s history with speed, determination and discipline.”
The government did not disclose the estimated cost of the deal.
Speaking in Halifax, Novia Scotia, on Monday, Carney also said the government would enter into negotiations to sign a contract with TKMS that could last several months.
“This project involves much more than purchasing submarines,” Carney said. “It improves Canada’s industrial capacity.”
TKMS, the world’s largest non-nuclear submarine manufacturer, was competing with South Korea’s Hanwha Ocean shipbuilding company for the submarine tender.
The newest submarine fleet is part of Carney’s efforts to increase military spending and aims to strengthen the country’s maritime sovereignty, especially in the Arctic.
US President Donald Trump has pressured the 32 members of NATO’s military pact to increase defense spending.
Canada announced in July 2024 that it was looking for a contractor to build its new submarine fleet, and Carney said the country will pick a winner to replace its aging Victoria-class ships, purchased in 1998, by this June.
David Perry, president of the Canadian Institute of Global Affairs, said the submarine contract gives Carney “significant credibility” in his efforts to prove he has increased defense spending.
“He has committed to executing the project on a very accelerated schedule – surprisingly fast by Canadian standards, and he appears to have succeeded,” he said. “This project will ultimately accelerate our base defense.”
Perry said that the Canadian government is focused on awarding the tender to a country with which it wants to establish a strategic partnership. Carney has sought to strengthen economic and security ties with Europe as Canada faces trade tensions with the United States, its long-time southern ally.
TKMS said its proposal, a joint partnership with Norway, offers “a low-risk, NATO-compliant and economically transformative solution to Canada” with an agreement that allows for joint maintenance and repair, training, logistics and operations.
Perry added that the new ships will give Canada a “tremendous increase” in maritime capabilities.
“It should allow a fleet of three submarines to be reliably operational at any time,” Perry said. “This is a huge increase in capacity over an sporadically operating submarine, which has been our reality for several years.”
The Canadian government said the new submarines, which will be conventionally operated and have under-ice capabilities, are critical to the security and sovereignty of a country with the world’s largest coastline.
