Canada has named Germany's ThyssenKrupp Marine Systems (TKMS) as its preferred supplier for up to 12 new submarines for the Royal Canadian Navy, Prime Minister Mark Carney announced from a warship in Halifax. The selection, confirmed on July 6, 2026, represents the largest defence procurement in Canadian history, with costs already provisioned in the federal budget.
Prime Minister Confirms Selection Amid Defence Spending Pressure
Speaking to reporters from the deck of a Canadian warship in Halifax, Prime Minister Mark Carney confirmed that TKMS had been chosen as the preferred supplier after a competitive process that also included Hanwha Ocean of South Korea. The decision comes as Canada faces pressure from NATO allies to increase domestic defence spending.
“Submarines that can patrol without being detected can stop our adversaries from accessing our territories and project our strength in waters where no other ships can be as efficient,” Carney told reporters in French. “The Royal Canadian Navy has been doing its job marvellously, but the Victoria-class submarines are now at the end of their lifespan.”
Largest Defence Investment with Economic Impact
Carney emphasized that this procurement will have the greatest economic impact of any defence investment across Canada. While declining to provide specific terms, he stated, “What I can confirm today is that we have already provisioned for the costs of purchasing these submarines in our fiscal framework, it’s already in the budget.”
The prime minister added that if negotiations with TKMS do not succeed, Canada reserves the right to enter into an agreement with Hanwha Ocean. “This was a difficult, close decision between two highly qualified suppliers,” Carney said. “Both the TKMS and Hanwha platforms met the very-high capabilities of the Royal Canadian Navy, and both of them put forward strong proposals to maximise benefits for Canadian workers and businesses.”
Specifications of the New Submarines
Canada will enter negotiations to purchase HDW Class 212CD diesel-electric attack submarines. These 74-metre-long boats are currently used by the German and Norwegian navies and are considered among the stealthiest in the world. They feature air-independent fuel cell-powered diesel engines charging lithium-ion battery banks, allowing up to 30 crew members to remain submerged for over 41 days.
The first four submarines are expected to be delivered by 2034. The new boats will be NATO-interoperable, replacing the aging Victoria-class submarines, of which only one of the four in Canada's fleet is currently seaworthy.
Last year, TKMS and Hanwha Ocean were announced as the two finalists in the process to replace Canada's obsolete Victoria-class submarines. The selection of TKMS underscores Canada's commitment to modernizing its naval capabilities amid growing geopolitical tensions.
