Canada Fuels Defence Tech with $13.8M for BC's AI & Aerospace Hub

NORTH SAANICH, BC – March 31, 2026 – British Columbia's thriving technology sector is set to receive a major boost for defence innovation, as the federal government, through its regional development agency PacifiCan, announced an investment of over $13.8 million. The funding targets five key projects in the province, focusing on advancing cutting-edge artificial intelligence (AI) and aerospace technologies with both military and civilian applications.

The announcement, made at the University of Victoria's Centre for Aerospace Research, comes on the heels of Canada confirming it has met the NATO 2% defence spending target, a significant milestone achieved through the largest year-over-year increase in defence expenditure in generations. This new investment is a clear signal of the government's intent to channel that spending into domestic innovation, strengthening national security while simultaneously fostering economic prosperity.

"British Columbia has the talent, innovation and expertise to help protect Canada and our Allies," said the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for PacifiCan. "By investing in AI and aerospace innovation here on Vancouver Island and across the province, we're giving researchers and businesses the tools they need to seize defence industrial opportunities, protect our sovereignty, and help build one strong Canadian economy."

A Strategic Investment in National Sovereignty

This funding is a direct component of the Regional Defence Investment Initiative (RDII), a three-year, $379.2 million national program designed to build industrial capacity and research infrastructure. PacifiCan is responsible for delivering $67.5 million of this initiative within British Columbia, a move that aligns perfectly with Canada's recently unveiled Defence Industrial Strategy (DIS).

The DIS represents a foundational shift in the country's approach to defence procurement and industrial support. With an initial investment of $6.6 billion, the strategy aims to create 125,000 high-paying jobs and significantly increase the share of defence contracts awarded to Canadian firms. It prioritizes a "Build-Partner-Buy" framework, emphasizing the development of homegrown solutions and technologies critical to Canada's strategic autonomy.

"Keeping Canada secure means investing in Canadian talent and technology," stated the Honourable Stephen Fuhr, Secretary of State for Defence Procurement. "These investments are targeted, strategic actions that will turn home grown ingenuity into real defence capability. We're building it here, buying it here, and keeping Canada strong."

The $13.8 million investment is a tangible application of this strategy, targeting what the DIS calls "frontier areas" like AI and advanced aerospace systems—technologies deemed essential for the future of both modern warfare and the broader economy.

Powering Innovation from Campus to Commercialization

The five projects selected for funding represent a cross-section of British Columbia's innovation ecosystem, from university research labs to established commercial enterprises.

The University of Victoria (UVic) is a major recipient, securing two separate grants totaling over $5.4 million. A $4 million investment will enable its Centre for Aerospace Research to establish a new satellite ground station and expand its testing facilities. This shared infrastructure will be a critical asset for businesses looking to test, validate, and deploy new aerospace and digital technologies, potentially bolstering Canada's surveillance and communication capabilities, particularly in the Arctic.

UVic's Advanced Control and Intelligent Systems Lab will receive an additional $1.4 million to commercialize an AI-powered drone system capable of autonomously mapping structures and terrain in high resolution. This technology has significant implications for surveillance, reconnaissance, and disaster response.

"UVic research in aerospace is advancing technologies that support small- and medium-sized businesses here in Canada," noted Dr. Lisa Kalynchuk, Vice-President of Research & Innovation at the University of Victoria. "Our partnerships create new ways to monitor the environment and support solutions for the safety and security of communities."

Beyond the university, three B.C. companies are receiving substantial funding to bring their innovations to market:

• Arcane Aerospace receives over $3 million to develop next-generation satellite technology for in-orbit operations, contributing to the modernization of Canada's space-based defence systems.
• Atreides is awarded nearly $2.5 million to commercialize an AI-powered software platform that enhances how unmanned systems across air, land, and sea gather, share, and analyze data, a key step toward advanced real-time intelligence and automation.
• OSI Maritime Systems, a known leader in naval technology, will use its nearly $2.9 million investment to improve its AI-augmented Collision Avoidance Decision Aid (CADA) software, designed to keep naval and commercial vessels safe in complex and hazardous conditions.

The Dual Promise: Defence Tech for Civilian Futures

A key aspect of this federal strategy is the emphasis on dual-use technologies—innovations with applications in both the defence and civilian sectors. This approach ensures that investments in national security also drive broader economic and societal benefits.

The AI-powered drone mapping system from UVic, for example, is as valuable for monitoring forest fires, assessing earthquake damage, or inspecting critical infrastructure as it is for military surveillance. Similarly, the advanced collision avoidance software from OSI Maritime Systems has the potential to dramatically improve safety in the global commercial shipping industry, reducing accidents and protecting marine environments.

Satellite technology developed by companies like Arcane Aerospace underpins everything from global GPS navigation and weather forecasting to international telecommunications. By fostering a domestic industry capable of producing these technologies, Canada not only enhances its security but also secures a foothold in lucrative global commercial markets. This dual-purpose strategy maximizes the return on public investment, creating a resilient industrial base that is not solely dependent on defence contracts.

Will Greaves, Member of Parliament for Victoria, highlighted this local impact, stating, "These investments in AI and aerospace will create good jobs and capabilities right here in our community, while ensuring Canada has the technology needed to protect Canadians for generations to come."

As these technologies mature, their integration into civilian life promises to enhance public safety, improve environmental stewardship, and create new efficiencies across multiple industries. With PacifiCan continuing to accept applications for the RDII until April 15, 2026, the door remains open for more of B.C.'s small and medium-sized businesses to contribute to this evolving landscape. This strategic infusion of capital underscores a national commitment to leveraging regional innovation for global security challenges and domestic prosperity.