Canada signs largest military deal in history, buys 12 submarines from Germany

Prime Minister Mark Carney has announced the largest defense equipment purchase in Canadian history. Ottawa has selected German defense company TKMS (Thyssenkrupp Marine Systems) to build 12 state-of-the-art submarines for the country’s navy. The government has announced plans to strengthen the country’s industrial sector and increase military capabilities through this multi-billion dollar project.
Prime Minister Carney made the announcement in Halifax, Nova Scotia, Canada, on Monday (July 6). He said that the world is becoming increasingly unstable and divided. In such a reality, there is no other choice but to strengthen defense capabilities to protect the country’s sovereignty, ensure the safety of citizens and secure the future.
“In an increasingly dangerous and divided world, Canada must be prepared to defend its interests, ensure the safety of its citizens, strengthen its economy and secure its future,” Carney said. “To that end, we are moving forward with speed, ambition and discipline on the largest defence procurement in our history.”
Although the Canadian government has not yet disclosed the potential cost of the deal, it is being considered the largest military purchase in the country’s history. The government said it will now begin negotiations with TKMS to sign a formal contract. The entire process could take several months to complete. Carney said the project is not just about buying new submarines; it will also play a significant role in increasing Canada’s industrial capacity, developing technological expertise and building a long-term defence infrastructure.
The current fleet of Victoria-class submarines in the Canadian Navy is very old. The government said only one of the four submarines, purchased in 1998, is currently operational. As a result, acquiring a new fleet has long been a priority in the country’s defense planning.
Canada, which has the world’s longest coastline, has been increasingly concerned about security, particularly in the Arctic, in recent years. The rapid melting of Arctic ice due to climate change is creating new sea lanes, which is increasing trade, as well as military competition and potential security risks. The new submarines will be able to operate under ice, further strengthening Canada’s presence in the Arctic.
German company TKMS is one of the world’s largest submarine builders. Its main competitor in the tender was South Korean shipbuilder Hanwha Ocean. TKMS said its proposal, in a joint partnership with Norway, would provide Canada with a low-risk, NATO-compliant and economically sustainable solution. It would also create opportunities for cooperation in maintenance, training, logistics and joint operations.
Defense analysts say the decision lends more credibility to Prime Minister Carney’s commitment to increasing defense spending. David Perry, president of the Canadian Institute of Global Affairs, said that Carney has kept his promise to move the project forward in a very short time. According to him, the launch of the new fleet will bring a major change in Canada’s maritime security capabilities. Where it is currently difficult to effectively deploy even one submarine on a regular basis, in the future it will be possible to actively operate at least three submarines at the same time.
The announcement comes at a time when Prime Minister Carney is going to attend a NATO summit. Pressure is expected to be exerted on member countries to increase defense spending. In particular, US President Donald Trump has long called on NATO member countries to significantly increase military spending.
Since coming to power, Carney has already increased Canada’s defense spending to 2 percent. In addition, he has also promised to increase it to 5 percent by 2035. According to analysts, the new submarine project is an important part of a larger defense strategy, which aims to strengthen Canada’s maritime security, especially its sovereign presence in the Arctic region.