Cape Breton Island 
Prime Minister Mark Carney says Canada has chosen Thyssenkrupp Marine Systems, or TKMS, as the preferred supplier for the Canadian Patrol Submarine Project, the largest defence procurement in the country’s history.
The announcement was made at Canadian Forces Base Halifax, as the federal government moves to replace the Royal Canadian Navy’s aging Victoria-class fleet. Canada’s current fleet has four submarines, but only one is seaworthy, according to the release.
Canada plans to buy up to 12 modern submarines. The government says negotiations with TKMS will now begin, with contracts expected to be completed no later than the end of 2027. The first four submarines are expected in 2034, before the Victoria-class fleet is retired in the mid-to-late 2030s.
The selected submarine, TKMS’ 212CD, is described in the release as one of the stealthiest in the world, with ultra-low acoustic and magnetic signatures. It is built for Arctic patrol, undersea surveillance, special forces deployment and NATO operations.
The government says the submarines will help the Royal Canadian Navy operate in the Atlantic, Pacific and Arctic oceans, while supporting NORAD missions, maritime security, intelligence gathering and allied operations.
Carney said the decision comes at a time when Canada must be ready to defend its interests. “We are making the largest defence procurement in our nation’s history with speed, ambition, and discipline,” he said.
If talks with TKMS do not succeed, Canada may designate Hanwha Ocean as the preferred supplier instead.
The procurement follows a multi-stage process that began with a request for information from September 2024 to February 2025. Two qualified suppliers were identified on August 26, 2025, proposal instructions followed in November 2025, and bids were submitted in March 2026. A clarification and amendment process ended April 29, 2026.
The project is being led through the Defence Investment Agency and falls under Canada’s Defence Industrial Strategy. Ottawa says the work will be subject to the Industrial and Technological Benefits Policy, with an emphasis on Canadian jobs, supply chains and defence industries.
Earlier this year, Canada reached 2 percent of defence spending for the first time since the fall of the Berlin Wall.
Carney did not reveal the price tag today.
