Canada has chosen Germany’s ThyssenKrupp Marine Systems (TKMS) as the preferred supplier for its new submarine fleet, awarding a contract that could include up to 12 vessels. This marks the country’s largest military procurement effort to date and a significant step in modernizing its naval capabilities.
The decision aligns with Canada's push to meet and exceed NATO defense spending targets. The government plans to raise its military budget to 5% of gross domestic product by 2035, surpassing the previous 2% target recently achieved. Current fiscal projections already aim for 4% of GDP in defense spending by 2030.
Canada aims to replace its aging fleet of four Victoria-class submarines, purchased secondhand from the United Kingdom in the late 1990s, with modern diesel-electric submarines better suited for Arctic and North Atlantic operations. TKMS, known for its diesel-electric submarines in service with over a third of NATO members, offers platforms compatible with allied navies, enhancing interoperability across the alliance.
The German and Norwegian governments have offered to allocate some production capacity to accelerate deliveries, potentially allowing Canada to receive four submarines by 2034. The selection process saw TKMS prevail over South Korea’s Hanwha Ocean. The United States did not submit a bid, as it only builds nuclear-powered submarines, whereas Canada required conventionally powered vessels.
This procurement decision precedes the NATO summit, where member states face calls to present concrete plans for increased defense commitments. Canada’s move signals a strong commitment to contributing a capable and modern military force within the alliance framework.