Canada Selects Germany's TKMS to Build 12 Submarines in Major Defence Upgrade

Canada has selected Germany's ThyssenKrupp Marine Systems (TKMS) as the preferred supplier to build 12 conventionally powered submarines , marking one of the country's largest military procurements as Ottawa accelerates defence modernisation and strengthens its role within NATO .

Prime Minister Mark Carney announced the decision ahead of the NATO summit, where member nations are expected to commit to significantly higher defence spending in response to evolving global security challenges.

"As part of our commitments to defend Canada and support our allies, I am pleased to announce that Canada has selected TKMS as the preferred supplier for Canada's Patrol Submarine Project," Carney said.

The German shipbuilder beat South Korea's Hanwha Ocean to secure the contract. TKMS said its diesel-electric submarines would enhance interoperability with NATO allies , many of whom already operate the company's conventionally powered vessels.

The new fleet will replace Canada's four aging Victoria-class submarines , acquired second-hand from the United Kingdom in the late 1990s. The decision also reflects Ottawa's effort to modernise its naval capabilities for operations in the North Atlantic, Arctic, and Indo-Pacific , regions that have become increasingly important amid heightened geopolitical competition and expanding maritime security concerns.

Carney has pledged to increase Canada's defence spending to 5% of GDP by 2035 , following the country's achievement of NATO's previous 2% spending target this year. The expanded investment aligns with the alliance's push for members to bolster military readiness through long-term capability upgrades.

No U.S. company participated in the competition, as the United States manufactures only nuclear-powered submarines , while Canada's procurement specifically sought conventionally powered diesel-electric vessels . The choice of TKMS also underscores growing defence cooperation among NATO partners while supporting Canada's broader strategy to reinforce deterrence, safeguard maritime trade routes, and contribute to security in the increasingly strategic Indo-Pacific region.