Canada Selects Germany for Major Submarine Deal

Canada has officially chosen the German shipbuilder ThyssenKrupp Marine Systems (TKMS) to build up to 12 new submarines. Prime Minister Mark Carney announced the decision this week, describing it as the largest defense purchase in the country’s history. This major deal comes as Canada works to replace its current fleet of four submarines, which were bought secondhand from Britain in 1998 and are now mostly undergoing maintenance.

The selection of TKMS follows a long and competitive process. For several months, Canada considered offers from both the German company and the South Korean shipbuilder Hanwha Ocean. Both companies promised to provide advanced technology and economic benefits to Canada. According to The Guardian, the German bid was supported by a partnership with Norway, another NATO member. NATO is a military alliance — a group of countries that agree to protect each other if one is attacked. By choosing a partner within this alliance, Canada is focusing on better military cooperation with its European allies.

Prime Minister Carney stated that in a world that is becoming more divided, Canada must be prepared to defend its interests and protect its citizens. He noted that the new fleet will help Canada build greater strategic autonomy, which means the ability to act independently in defense matters. The deal is also seen as a way to reduce Canada’s reliance on the United States for military equipment. While Canada has recently agreed to buy American-made fighter jets, this submarine contract signals a shift toward broader European partnerships.

The new submarines are expected to play a vital role in Canada’s defense strategy, particularly in the Arctic. The TKMS model, known as the 212CD, uses stealth technology to operate quietly, making it difficult for others to detect. This will allow the Canadian navy to conduct long surveillance missions in key Arctic routes, including the Northwest Passage. German Defense Minister Boris Pistorius stated that the combined fleet of Canada, Germany, and Norway will become a key pillar of NATO’s security strategy in the North Atlantic and the Arctic.

While the exact cost was not officially disclosed by the Canadian government, reports from various sources suggest the total bill could be very high. The Globe and Mail reported that the contract for the submarines themselves could cost between 20 and 30 billion Canadian dollars. When including the costs for long-term maintenance, operations, and future upgrades over the next 50 years, the total amount could reach as high as 50 billion Canadian dollars. The German news agency DPA estimated the value of the deal and related support to be around 20 billion euros.

There are several reasons why this deal is significant for the current political climate. Canada has been under pressure from United States President Donald Trump to increase its military spending. In response, Canada has committed to spending 5 percent of its gross domestic product (GDP) on defense by 2035. The country recently reached the NATO target of 2 percent of GDP. This submarine purchase is a clear sign that Canada is serious about meeting these goals.

For the German government, the deal is a major success. Chancellor Friedrich Merz described the agreement as a strong signal for the partnership between Germany and its allies. The project is also expected to create up to 1,500 jobs at TKMS shipyards in Germany. For Canada, the focus now shifts to finalizing the contract. Officials expect this process to take some time, with the goal of having the first submarines in service by 2035.

Although Hanwha Ocean did not win the contract, their bid was highly competitive. The South Korean company had proposed using Canadian steel to build military vehicles in Ontario and had invested heavily in advertising to promote their technology. However, the German-Norwegian proposal ultimately offered a level of interoperability — the ability of different military systems to work together — that was highly attractive to NATO leaders. As Canada prepares for the upcoming NATO summit in Turkey, this announcement serves as a clear statement of its commitment to the alliance and its future security needs.