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Canada Makes Historic Decision to Purchase New German Submarines in $70 Billion Defense Program, Replacing Aging Victoria-Class Fleet by 2033

Author profile image Fabio Lucas Carvalho
Written by Fabio Lucas Carvalho Published on 07/07/2026 at 11:50
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The choice of the German TKMS was announced by Prime Minister Mark Carney in Halifax, Nova Scotia, and paves the way for the final contract negotiation by the end of the year. The Type 212CD submarines will replace the Victoria class, considered obsolete, in a program that includes construction, maintenance, infrastructure, armaments, and long-term support.

Canada has chosen the German TKMS to build its new fleet of submarines, the largest defense purchase ever made by the country. The announcement was made by Prime Minister Mark Carney on July 6, in Halifax.

The decision ended an international dispute between TKMS and the South Korean Hanwha Ocean. With the choice, the Canadian government now opens the contractual negotiation phase, expected to be concluded by the end of the year.

The German company will supply Type 212CD submarines, a model already under construction for Germany and Norway. The new vessels will replace the Victoria class fleet, considered obsolete and nearing retirement by the mid-2030s.

New submarines are expected to arrive starting in 2033

According to interestingengineering, the first submarine of the new Canadian fleet is scheduled for 2033. Three more are expected to arrive the following year, in a schedule designed to avoid an operational gap when the current Victoria submarines are decommissioned.

The contract value has not yet been disclosed by Carney. Nevertheless, the estimate presented for the complete program is around US$ 70 billion, equivalent to CAD 100 billion, over its duration.

This amount involves construction, maintenance, infrastructure, armaments, and long-term support. The size of the package helps explain why the purchase has gained strategic importance within Canadian defense policy.

With a length of about 73 meters and an approximate displacement of 3,307 American tons, the Type 212CD is designed for prolonged missions. The design includes greater payload capacity and better living conditions for crews.

TKMS won a close contest against Hanwha

Carney stated that the choice was difficult and close, involving two highly qualified suppliers. He said that both the TKMS and Hanwha proposals met the Royal Canadian Navy’s capability standards.

The Prime Minister also highlighted that both companies presented solid proposals to expand benefits to Canadian workers and businesses. In the end, the decision aimed to combine platform and partnership considered most suitable to Canada’s strategic, security, and economic interests.

Hanwha Ocean had offered the KSS-III submarine. During the competition, the South Korean company launched an intense campaign to demonstrate the capability of its design and strengthen its presence in the Canadian defense debate.

In May, the Republic of Korea Navy sent a KSS-III to Victoria, British Columbia. The objective was to showcase long-range capabilities and participate in joint operations with the Royal Canadian Navy.

Purchase reinforces NATO goals and Canadian industry

The announcement came a day before the NATO Summit in Turkey. Canada currently invests 2.1% of GDP in defense and has committed to raising this percentage to 5% by 2035.

Carney stated that the program will strengthen the Canadian Armed Forces and open opportunities for the national industry. He also linked the submarines to strengthening the defense industrial base and deepening partnerships with allies.

The CEO of TKMS, Oliver Burkhard, said that the company is ready to work with the Canadian government, local industry, and partners in Germany and Norway. For him, the new submarine capability could also generate economic opportunities.

Hanwha Canada stated it was disappointed with the outcome but said the competition demonstrated the strength of South Korea’s defense industrial base. The company also said it intends to continue expanding ties with Canada.

Carney stated that the decision does not alter Canada’s strategy for the Indo-Pacific. He said the country remains committed to the region and cited initiatives with Korea focused on economic resilience and security presence.

Bidding advanced in less than a year

Stephen Fuhr, Canadian Secretary of State for Defense Procurement, stated that the submarine bidding was completed in less than a year. According to him, it is one of the fastest defense acquisitions in Canada’s history.

Fuhr acknowledged that the Canadian military procurement system is often criticized for its slowness. For the government, the program shows that future acquisitions can progress at a faster pace.

The expectation is that the new submarines will enter service when the Victoria class is retired, maintaining the country’s submarine capability.

Why submarines weigh so much in defense

Submarines are strategic military platforms because they operate discreetly, away from the direct observation of adversaries, and can remain on mission for long periods.

In countries with large coastlines and interests in distant maritime regions, this type of capability helps patrol sensitive areas, protect routes, and support allied operations.

The replacement of an old fleet also requires prolonged planning because it involves training, infrastructure, maintenance, armaments, and integration with other forces. Therefore, submarine programs tend to have high costs and broad industrial impact.

The information about the choice of TKMS, the announcement made by Mark Carney on July 6 in Halifax, the delivery schedule starting in 2033, the estimate of up to US$ 70 billion for the complete program, and the Canadian commitment to raise military spending to 5% of GDP by 2035 were disclosed by the government of Canada and authorities involved in the process.

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Fabio Lucas Carvalho

Journalist specializing in a wide variety of topics, such as cars, technology, politics, naval industry, geopolitics, renewable energy, and economics. Active since 2015, with prominent publications on major news portals. My background in Information Technology Management from Faculdade de Petrolina (Facape) adds a unique technical perspective to my analyses and reports. With over 10,000 articles published in renowned outlets, I always aim to provide detailed information and relevant insights for the reader.

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