Canada Selects TKMS as Preferred Supplier for Historic Royal Canadian Navy Submarine Fleet
Canada Submarine Procurement Advances with TKMS Selected for Royal Canadian Navy Fleet
HALIFAX, N.S. — The Government of Canada has selected Germany’s Thyssenkrupp Marine Systems (TKMS) as the preferred supplier to begin negotiations for a new fleet of submarines for the Royal Canadian Navy (RCN), marking what Prime Minister Mark Carney described as the largest defence procurement in Canadian history.
Announced July 6 at Canadian Forces Base Halifax, the decision advances the Canadian Patrol Submarine Project (CPSP), a program that will replace Canada’s aging Victoria-class submarines with up to 12 next-generation vessels designed to strengthen Canada’s defence capabilities across the Atlantic, Pacific, and Arctic.
The procurement comes as the federal government says Canada’s defence strategy is adapting to growing geopolitical tensions, Arctic security challenges, and NATO commitments.
New submarine fleet aimed at strengthening sovereignty
According to the Prime Minister’s Office, the selected TKMS 212CD submarine platform features ultra-low acoustic and magnetic signatures, making it among the world’s stealthiest conventional submarines. The vessels are designed for Arctic patrols, undersea surveillance, special forces deployment, and interoperability with NATO allies.
The government said the new fleet will significantly improve Canada’s ability to detect, monitor, deter and, if necessary, respond to threats across Canada’s three ocean regions.
Currently, Canada operates four Victoria-class submarines, with the government noting that only one is presently seaworthy.
Contract negotiations begin
Canada will now enter formal negotiations with TKMS, with the federal government aiming to finalize contracts and associated agreements by the end of 2027.
Under the current schedule, the first four submarines are expected to be delivered in 2034—earlier than originally anticipated.
Officials also identified South Korea’s Hanwha Ocean as the reserve supplier should negotiations with TKMS fail to produce a final agreement.
Canada is designating German manufacturer TKMS as the preferred supplier for our next fleet of submarines.
This will be the largest defence procurement in our nation’s history and it will have enormous, lasting benefits for Canadian industries and workers. Together with our… pic.twitter.com/sZGkpmEcGY
— Mark Carney (@MarkJCarney) July 6, 2026
Defence investment tied to Canadian industry
The submarine project is being managed through Canada’s Defence Investment Agency and forms part of the federal government’s Defence Industrial Strategy under its “Build-Partner-Buy” framework.
The government says the procurement will prioritize Canadian industrial participation through the Industrial and Technological Benefits Policy, supporting domestic manufacturing, supply chains, innovation, and skilled employment across Canada.
Federal officials said the project is expected to generate long-term economic benefits while strengthening Canada’s defence industrial base.
Historic defence modernization
The announcement follows a series of defence initiatives introduced by the federal government, including reaching NATO’s benchmark of spending two per cent of GDP on defence, establishing the Defence Investment Agency, and expanding defence partnerships with allied nations.
The CPSP also supports Canada’s commitments to NATO and NORAD while addressing growing concerns over Arctic sovereignty as climate change opens new maritime routes and increases strategic competition in the North.
According to the government, Canada’s current submarine fleet will remain operational into the mid-to-late 2030s as the new vessels are delivered.
The procurement process included a Request for Information launched in 2024, supplier qualification in 2025, proposal submissions in early 2026, and a multi-stage evaluation completed this spring before TKMS was selected as the preferred bidder.
Source: Prime Minister’s Office
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