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OTTAWA, July 6, 2026 — The Carney government has just announced that up to 12 new submarines will be built through a partnership between Canada, Germany and Norway, creating jobs and boosting defence industries across all three countries.
Canada has selected German defence company Thyssenkrupp Marine Systems (TKMS) as the preferred supplier for what the federal government is calling the largest defence procurement in Canadian history.
Prime Minister Mark Carney announced Monday that Canada intends to purchase up to 12 next-generation Type 212CD submarines under the Canadian Patrol Submarine Project (CPSP), replacing the Royal Canadian Navy’s aging Victoria-class fleet.
Although the final contract is still being negotiated, the project is expected to be worth tens of billions of dollars. The government has not released a final purchase price, but TKMS estimates the project will generate approximately $167 billion in total economic activity across Canada, including $86 billion in economic impact and more than 650,000 job-years over the life of the program.
The first four submarines are expected to be delivered in 2034, ahead of the planned retirement of Canada’s current submarines later that decade.
PM Carney: Investment will strengthen Canada
Prime Minister Mark Carney said the investment is about far more than purchasing new military equipment.
“In a more dangerous and divided world, Canada must be prepared to defend our interests, protect our citizens, build our economy, and secure our future,” Carney said.
He added that the submarine project “will secure our coastlines and waters, and their construction will have enormous, lasting benefits for Canadian industries and workers.”
Carney also emphasized that Canada will work “together with our German and Norwegian Allies” to expand strategic capabilities while creating greater economic opportunities for Canadians.
A partnership spanning three countries
Rather than simply purchasing submarines, Canada is entering into a long-term partnership with Germany and Norway, which are already jointly developing and building the advanced Type 212CD submarine.
The agreement includes plans to establish a Canadian sustainment enterprise, meaning much of the long-term maintenance, servicing, workforce training and supply chain work will happen in Canada.
Canadian manufacturers are expected to become part of the international defence supply chain, creating work for companies across the country while also strengthening industrial ties with Europe.
Quebec manufacturer Marmen, one of TKMS’s Canadian industrial partners, welcomed the announcement, saying it looks forward to helping manufacture major submarine components and expanding Canada’s advanced manufacturing capabilities.
Built for the Arctic
The Type 212CD submarines were designed jointly by Germany and Norway with Arctic operations in mind.
According to the federal government, the submarines feature extremely low acoustic and magnetic signatures, making them among the stealthiest conventional submarines in the world. They will be capable of Arctic patrols, underwater surveillance, special forces deployment and operations alongside NATO allies.
The new fleet will allow Canada to maintain an underwater presence in the Atlantic, Pacific and Arctic oceans while replacing vessels that have become increasingly difficult to keep operational. Government officials noted that currently only one of Canada’s four Victoria-class submarines is seaworthy.
Ministers highlight Canadian jobs
National Defence Minister David McGuinty called the project a critical investment in Canada’s security.
“Today’s decision will provide the Royal Canadian Navy a critical capability, ensuring we can defend and secure Canada’s vast coastline. From coast to coast to coast, this historic investment in the Canadian Armed Forces will bring strong economic benefits and jobs across the country.”
Industry Minister Mélanie Joly said the project is equally an investment in Canadian workers.
“This historic submarine procurement represents more than an investment in Canada’s security – it is an investment in Canadians. By leveraging the Industrial and Technological Benefits Policy, we are creating good-paying jobs, strengthening domestic supply chains, supporting Canadian businesses and innovators, and delivering long-term economic benefits across the country.”
TKMS welcomes historic agreement
TKMS CEO Oliver Burkhard described Canada’s decision as a milestone for all three countries.
“This is an important day—for Canada, Germany and Norway.”
Burkhard said the Canadian Patrol Submarine Project is “more than a procurement program; it is the foundation of a long-term strategic partnership between trusted allies.”
He added that the company is ready to work with the Canadian government and Canadian industry “to deliver a world-class submarine capability that will strengthen security, create economic opportunity and generate lasting benefits for future generations.”
Negotiations on the final contract are expected to continue through 2027, with construction and industrial work ramping up afterward. If completed as planned, the submarine program will become one of the largest and longest-running defence and manufacturing partnerships in Canadian history.
all images courtesy TKMS
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