LIVE: Carney tours base in Halifax, speaks before departing for NATO Summit

Canada selects TKMS for up to 12 submarines

The federal government chose Thyssenkrupp Marine Systems over Hanwha Ocean to build the conventionally-powered submarine fleet, representing the most consequential defense procurement in Canadian history.

Accelerated delivery brings first four vessels by 2034

Germany and Norway offered production slots enabling Canada to receive four submarines by 2034, five years ahead of the original procurement schedule.

Platform leverages existing NATO supply chain

TKMS provides one-third of NATO's submarines, ensuring robust delivery capacity and seamless alliance interoperability despite the vessels not yet being built or tested.

Contract mandates 100% domestic investment matching

The agreement requires TKMS to match the full contract value with tens of billions of dollars in Canadian investment across space, munitions, autonomous technologies, critical minerals, and R&D.

Regional benefits span coast to coast

Industrial benefits include Halifax shipyards and sustainment, Vancouver engineering, Montreal simulators, Calgary clean energy solutions, and Manitoba aerospace manufacturing for torpedoes.

Sovereign sustainment creates long-term technical capacity

Canada will build the infrastructure to maintain and support the fleet domestically for its entire operational life, creating stable careers for technicians, engineers, and skilled tradespeople.

Defense spending to reach 4% of GDP by decade's end

Canada's fiscal framework budgets for total defense spending to hit 4% of GDP by 2030, ahead of NATO's 2035 timetable, positioning Canada to help lead the alliance.

Submarines and icebreakers secure Arctic sovereignty

The new fleet complements the world's second-largest icebreaker force to assert full Canadian sovereignty in the Arctic through increased operational presence.

European selection maintains Indo-Pacific partnerships

Choosing TKMS does not signal reduced Indo-Pacific commitment; Canada is deepening strategic cooperation with South Korea in other technology sectors and advancing trade negotiations with India.

Defense Investment Agency accelerates procurement timeline

The new agency reviewed and selected bids in under one year, demonstrating the government's ability to fix chronic defense procurement delays.

Pricing withheld during 6-18 month negotiations

Final contract pricing will not be released until commercial negotiations conclude to avoid prejudicing Canada's bargaining position in the largest procurement in national history.