Canada picks German firm for up to 12 submarines in largest military deal

Canada has chosen Germany's ThyssenKrupp Marine Systems (TKMS) as the preferred supplier for a new fleet of up to 12 submarines, marking the country's largest-ever military procurement. Prime Minister Mark Carney announced the decision Monday, emphasizing its role in bolstering Canada's defense spending and enhancing interoperability within NATO.

Carney stated that the TKMS platform is optimal for Arctic waters and NATO operations, noting that the company's submarines are already used by over a third of the alliance's members. "The submarine is proven and capable. It is used widely by our allies," Carney said at a military base in Halifax, Nova Scotia. He added that TKMS provides submarines to navies worldwide and that their conventionally powered vessels would strengthen interoperability among allies.

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The submarine is proven and capable. It is used widely by our allies. TKMS provides submarines to over a third of the NATO alliance, and is the leading submarine provider to navies around the world.

The procurement comes as Canada pledges to significantly increase military spending, aiming to reach 5% of GDP by 2035. Carney highlighted that Canada's fiscal framework already budgets for 4% of GDP by 2030. The German and Norwegian governments have offered to make production slots available, potentially allowing Canada to receive its first four submarines by 2034. This new fleet will replace the four aging Victoria-class submarines purchased from the United Kingdom in the late 1990s.

TKMS beat out competition from South Korea's Hanwha Ocean. Notably, no U.S. company bid on the contract, as the United States exclusively builds nuclear-powered submarines, while Canada sought conventionally powered diesel-electric vessels.

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The largest in Canadian history