Carney Set to Pick Winner of Canada's 12-Submarine, $100 Billion Fleet Program
Updated
Updated · CBC Sports · Jul 5
Carney Set to Pick Winner of Canada's 12-Submarine, $100 Billion Fleet Program
3 articles · Updated · CBC Sports · Jul 5
Summary
Halifax is expected to host Mark Carney's announcement Monday on whether Germany's TKMS or South Korea's Hanwha Ocean will build Canada's next submarine fleet before he heads to the NATO summit in Turkey.
12 submarines are at stake in a program estimated at $24 billion to buy and more than $100 billion over 30 years, with Carney saying the choice will turn on economic offsets and long-term strategic partnerships.
Four boats by 2035 are promised by Hanwha, while TKMS says it can deliver four by 2036, a key issue as only one of Canada's four aging Victoria-class submarines is currently operational.
NATO alignment and industrial policy are central to the decision: the German-Norwegian bid touts alliance interoperability and an $86 billion GDP impact, while the South Korean offer projects $94 billion and deeper Indo-Pacific ties.
Will Canada's $100B choice reinforce NATO ties or pivot its strategic focus to the Pacific?
Which nation's promise of faster delivery and greater economic impact will win Canada's historic contract?
Canada’s $60 Billion Submarine Decision: Strategic Stakes, Industrial Impact, and the Race Between Hanwha Ocean and TKMS
Overview
Canada is approaching a major decision on its future naval strength, with an announcement on the Canadian Patrol Submarine Project (CPSP) expected before July 7, 2026. This project, valued at up to C$60 billion, will shape the Royal Canadian Navy’s submarine fleet for decades and have significant impacts on national security and industrial growth. The competition has narrowed to Hanwha Ocean and TKMS, with each offering advanced submarine proposals. The outcome of this decision will define Canada’s maritime capabilities and influence its strategic and economic future.