Canada Would Procure German Submarines For Strengthening Its Naval Forces.

Ontario; July 2026: Canadian Prime Minister Muke Carney today (Tuesday – 07th July 2026) has finally decided to award a multi-billion-dollar contract to German Major ThyssenKrupp Marine Systems (TKMS) for Canadian Navy’s new fleet of 12 submarines to replace its aging Victoria-Class fleet.

While briefing the media reporters in Halifax today (Tuesday – 07th July 2026) PM Carney called the reported $24-billion procurement the ‘largest in Canadian history’. He has further asserted that the contract may extend to more than $100 billion over its lifetime. Carney said the federal government will now enter into negotiations with TKMS to sign a contract, a process that will take several months.

“This project is about much more than acquiring submarines. It builds Canadian industrial capacity”, he said, while further adding that, “this government campaigned on the promise we would fix Canada’s chronic defence procurement problems. Today’s announcement is another important step in that direction”.

Secretary of State for Defence Procurement Stephen Fuhr was also slated to be in Esquimalt, British County (BC), to reveal the decision to the West Coast navy. The joint German-Norwegian bid was chosen over South Korea’s Hanwha Ocean and Carney suggested there was hard bargaining ahead.

Oliver Burkhard, CEO of TKMS, said it was an ‘important day’ for Canada, Germany and Norway. “We stand ready to work alongside the government of Canada, Canadian industry and our partners in Germany and Norway to deliver a world-class submarine capability that will strengthen security, create economic opportunity and generate lasting benefits for future generations”, Burkhard said in a news release.

A senior federal official, speaking on background aboard the Prime Minister’s plane en route to Halifax, said they hope to conclude a contract by next year.

“In the event that negotiations with TKMS are unsuccessful, Canada retains the right to designate Hanwha’s KSS-III, currently the reserve supplier, as the preferred supplier and enter negotiations with them. This was a difficult, close decision between two highly qualified suppliers. Both the TKMS and Hanwha platforms met the capabilities of the Royal Canadian Navy, and both put forward strong proposals to maximize benefits for Canadian workers and businesses”, Carney has said in his speech

Almost a year ago, Carney announced the field of submarine bidders had been narrowed to two choices — the German-designed Type 212CD and the South Korean KSS-III. Both bidders and their governments were given until the spring to submit detailed bids and promises of economic offsets — proposals that could mean billions of dollars in investment in the Canadian economy.

Prime Minister Mark Carney said that Canada is set to receive ‘tens of billions in investment’ as part of a deal with Thyssenkrupp Marine Systems, the German shipbuilding company that won Canada’s bid for new submarines. Carney said the investments ‘will impact every region of the country’.

No overall price tag was revealed, even though the Prime Minister touted it as the single biggest defence procurement in Canadian history. A senior federal official said the cost will be determined through the contract negotiations. It is believed, however, that the purchase of the submarines could run up to $24 billion. With lifetime maintenance and sustainment costs added, the overall program will likely hit $100 billion or more.

In its original pitch, TKMS committed to deliver 04 submarines to Canada by 2036, but the federal official said that timeline could be advanced to 2034. PM Carney signalled that he’s committed to buy all 12 boats and said he’s set aside money in the federal government’s long-term fiscal framework.

The choice to negotiate with a German shipbuilding company has far-reaching geostrategic implications, notably pulling Canada closer into Europe’s orbit when the United States is pulling away from NATO. The decision is bound to disappoint the South Koreans who have long felt that Canada looks more toward Europe than to the Indo-Pacific. Some analysts have suggested that the choice of the German-Norwegian bid could be a blow for Canadian ambitions and investment in Asia.

“As dynamic, reliable, like-minded democracies, Germany, Norway and the Republic of Korea are each critical strategic partners to Canada in this new world”, Carney said.

Team Maverick.