Prime Minister Carney announces the preferred supplier for the Canadian Patrol Submarine Project - the largest defence procurement in Canadian history

HALIFAX, NS, July 6, 2026 /CNW/ - The assumptions that shaped decades of Canadian defence and security are being upended. Climate change is causing our Arctic region to warm nearly three times faster than the global average – a shift that adversaries are actively looking to exploit. In this increasingly dangerous and divided world, Canada must be prepared to defend ourselves and our Allies. To that end, Canada's new government has reached 2% of defence spending for the first time since the fall of the Berlin Wall, transformed defence procurement, and secured over 20 defence and security partnerships in a year.

Key to this mission is the Canadian Patrol Submarine Project (CPSP). Submarines enable the Royal Canadian Navy (RCN) to defend threats near and far from Canada's shores. Yet, our current fleet is aging, with only one of four submarines seaworthy. With the longest coastline in the world, Canada's ability to deploy underwater surveillance capability is critical. Our security and sovereignty depend on them.

Today, at Canadian Forces Base Halifax, the Prime Minister, Mark Carney, announced that Thyssenkrupp Marine Systems (TKMS) has been selected as the preferred supplier to begin negotiations for delivering Canada's next fleet of submarines to the RCN. This will be the largest defence procurement in Canadian history, and it will equip the RCN with the capabilities they need to keep Canadians safe.

With ultra-low acoustic and magnetic signatures, TKMS' 212CD is one of the stealthiest submarines in the world. It is capable of Arctic patrol, undersea surveillance, special forces deployment, and it is fully NATO-interoperable. These submarines provide an unparalleled combination of advanced technology and lethality that will enable the RCN to detect, track, deter and, if necessary, defeat adversaries in all three oceans bordering Canada. This procurement will bolster Canadian security through a platform shared by Germany and Norway, two of Canada's closest Allies.

The Government of Canada and TKMS will now enter into negotiations to finalise the contracts and all arrangements required to deliver the requirements of the CPSP. Canada will conclude contracting no later than the end of 2027, with the first four submarines to be delivered ahead of schedule, in 2034. In the event that negotiations with the preferred supplier are unsuccessful, Canada may designate Hanwha Ocean as the preferred supplier and enter into negotiations.

The CPSP is being advanced by the Defence Investment Agency and aligns with Canada's Defence Industrial Strategy. Under the Build-Partner-Buy framework, the project demonstrates the Partner approach, with collaborations with trusted Allies to develop and deliver capabilities while ensuring industrial and economic benefits for Canada. The CPSP will prioritise investments across the Canadian supply chain, to create high-paying jobs, leverage Canadian defence industries, and maximise benefits for Canadian workers and businesses.

Canada is taking full responsibility for our defence, including in the Arctic. We have made the largest increase in defence investment in a generation. We are transforming our regulatory system from one that checks boxes to one that builds our defence industrial base with speed and scale. By investing in our people, our capabilities, our industry, and our partnerships, we are building a stronger, more secure Canada – one that is ready to meet today's challenges, support our Allies, and shape a safer, more prosperous future for generations to come.

Quotes

"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. To that end, we are making the largest defence procurement in our nation's history with speed, ambition, and discipline. Canada's next submarine fleet will secure our coastlines and waters, and their construction will have enormous, lasting benefits for Canadian industries and workers. Together with our German and Norwegian Allies, we will build at speed and scale to expand our strategic capabilities and create greater strategic autonomy. We will build this fleet to build Canada strong."
-- The Rt. Hon. Mark Carney, Prime Minister of Canada

"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."
-- The Hon. David J. McGuinty, Minister of National Defence

"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."
-- The Hon. Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

"Today's announcement demonstrates that Canada can move at the speed of relevance. Completing a competitive process of this scale in roughly eight months, while maintaining a rigorous and fair evaluation, is an important milestone in modernising defence procurement. It reflects an understanding that national security and economic security go hand in hand. We evaluated proposals on their ability to deliver world-class capability to the Royal Canadian Navy, and on the long-term benefits they will create for Canadian workers, industry, and innovation through our Build-Partner-Buy approach. Finally, this process identified two highly credible solutions. By naming both a preferred supplier and a reserve supplier, we've strengthened the resilience of this program and positioned Canada to deliver this critical capability faster and with greater confidence."
-- The Hon. Stephen Fuhr, Secretary of State (Defence Procurement)

Quick facts

• The CPSP will deliver up to 12 modern submarines to replace the aging Victoria-class fleet.
  • The RCN's current submarine fleet will remain operational into the mid-to-late 2030s.
  • The project will be subject to Canada's modernised Industrial and Technological Benefits Policy, ensuring the investment generates long-term economic benefits for Canadians.
• The Government of Canada has conducted a rigorous, multi-stage procurement process to identify a preferred supplier, including:
  • A Request for Information issued from September 2024 to February 2025.
  • Identification of two qualified suppliers on August 26, 2025.
  • Issuance of proposal instructions in November 2025.
  • Submission of proposals in March 2026.
  • A bid clarification and amendment process aligned with Canada's Defence Industrial Strategy, concluded on April 29, 2026.
• Advancing the CPSP supports Canada's broader commitments to sovereignty, continental defence, and collective security with allies, including through the North Atlantic Treaty Organization (NATO) and the North American Aerospace Defense Command (NORAD).
• To enable defence industries to scale up more easily and with maximum benefit to the Canadian economy, the government launched the Defence Investment Agency and the Defence Industrial Strategy.
  • The Defence Investment Agency is modernising Canada's defence procurement by centralising expertise, cutting red tape, and streamlining decisions – supporting the implementation of Canada's Defence Industrial Strategy and helping accelerate defence investments.
  • The Defence Industrial Strategy positions Canadian industry to take advantage of $180 billion in defence procurement opportunities and $290 billion in defence-related capital investment opportunities in Canada over the next 10 years.

Associated links

• Delivering the Defence Industrial Strategy
• Defence Advisory Forum
• Security, Sovereignty and Prosperity: Canada's Defence Industrial Strategy
• Canada and the North Atlantic Treaty Organization

This document is also available at https://pm.gc.ca

SOURCE Prime Minister's Office

PMO Media Relations: [email protected]