Prime Minister Mark Carney will announce on Monday, July 6, 2026, in Halifax that the Canadian government has selected Germany's ThyssenKrupp Marine Systems (TKMS) as the preferred bidder to build a new fleet of 12 submarines, according to sources reported by The Globe and Mail.
The decision ends a fierce competition between Germany's TKMS and South Korea's Hanwha Ocean to replace the Royal Canadian Navy's aging Victoria-class vessels.
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The initial procurement cost for the 12 diesel-electric submarines is estimated between $20 billion and $30 billion.
Long-term maintenance, operations, and upgrades over three decades could drive the total program value upwards of $100 billion.
Ottawa plans to leverage the multi-billion-dollar project to bolster its domestic industrial capacity and elevate national defence spending.
Canada has committed to reaching NATO's defence spending benchmark of 5 percent of its gross domestic product by 2035, a plan Carney will take to the upcoming NATO leaders' summit in Turkey.
The joint German-Norwegian bid submitted by TKMS focuses heavily on infrastructure, advanced weapons manufacturing, and energy partnerships.
According to German Defence Minister Boris Pistorius, the TKMS proposal, which features the Type 212CD model, is projected to inject $86 billion into Canada's gross domestic product and generate substantial employment over the life of the agreement.
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The acquisition marks a historic expansion for Canada's underwater military capability, growing the current naval fleet from four second-hand submarines to 12 newly built stealth vessels.
