Canada Seeks Domestic Partners for Future Submarine Fleet Sustainment

OTTAWA, ON – March 06, 2026 – The Government of Canada has taken a critical step in its multi-billion-dollar quest to acquire a new submarine fleet, launching a formal search for domestic industrial partners to maintain and sustain the advanced vessels for decades to come. The Defence Investment Agency (DIA) today issued a Request for Information (RFI), signaling a major push to build a sovereign supply chain for one of the most complex military assets in the nation's arsenal.

This move comes as Ottawa evaluates final proposals for the Canadian Patrol Submarine Project (CPSP) from two international shipbuilding giants: Germany's Thyssen Krupp Marine Systems (TKMS) and South Korea's Hanwha Ocean Co., Ltd. A decision on which firm will be selected to build up to 12 new conventionally-powered submarines is expected as early as this summer. The project, with a total value estimated to be north of $60 billion over its lifetime, represents one of the largest defence procurements in Canadian history.

The RFI is the first tangible implementation of Canada's recently unveiled Defence Industrial Strategy (DIS), which prioritizes building military equipment in Canada and ensuring the country can support its own forces independently. By engaging industry now, before a final submarine design is even chosen, the government aims to map out domestic capabilities and ensure Canadian companies are prepared for the immense task of keeping the future fleet operational.

A Generational Industrial Opportunity

At the heart of the government's strategy is the promise of a massive economic windfall and the creation of a resilient domestic defence industry. The DIS, launched in February, aims to add up to 125,000 new jobs over the next decade by leveraging major defence contracts to stimulate Canadian innovation and manufacturing.

Sustainment activities—including maintenance, repair, and upgrades—for the new submarines will be conducted entirely in Canada, primarily near their homeports on the Atlantic and Pacific coasts. This commitment is intended to create thousands of stable, highly skilled jobs and foster a nationwide network of suppliers.

"The scale of the Canadian Patrol Submarine Project represents a generational opportunity to strengthen Canada's economy and sovereign capabilities," said the Honourable Stephen Fuhr, Secretary of State for Defence Procurement. "By engaging industry early through this RFI, we are ensuring Canadian companies are positioned to lead the sustainment of this fleet, anchor critical supply chains, and build the advanced industrial capacity our country requires."

Both international bidders have made significant industrial promises. Hanwha Ocean, for instance, has suggested its proposal could support an average of 15,000 jobs annually over several decades, spanning manufacturing, systems integration, and long-term services. The RFI invites feedback from companies of all sizes, including those not traditionally involved in the defence sector, to maximize this economic impact.

The Race for an Arctic-Ready Fleet

The strategic imperative for this project is clear: Canada's four aging Victoria-class submarines are set to retire in the mid-to-late 2030s. A failure to secure a replacement will leave the Royal Canadian Navy with a critical capability gap, undermining its ability to patrol the country's three coastlines, assert sovereignty in an increasingly contested Arctic, and contribute to international security missions.

The two competing designs offer state-of-the-art capabilities tailored for Canada's needs. Thyssen Krupp's proposed Type 212CD submarine, a larger version of a design being built for the German and Norwegian navies, features a unique diamond-shaped hull for enhanced stealth and advanced air-independent propulsion (AIP) allowing it to stay submerged for weeks. The company has already partnered with Canadian simulation and training giant CAE to prepare for in-service support.

Hanwha Ocean's KSS-III Batch-II model, already in service with the Republic of Korea Navy, boasts a proven design with long-range endurance. It is equipped with advanced lithium-ion batteries and an AIP system, giving it a submerged endurance of over three weeks. Hanwha has aggressively courted Canadian partners, signing agreements with companies like Babcock Canada for sustainment and Algoma Steel for materials, and has promoted an ambitious delivery timeline that could see the first submarine arrive by 2032.

A Defining Test for Procurement Reform

The submarine project serves as the first major test for the Defence Investment Agency, a new body established in October 2025 to fix Canada's notoriously slow and convoluted procurement system. For decades, defence projects have been plagued by delays and cost overruns, often leaving the Canadian Armed Forces waiting years for essential equipment. The DIA was created to centralize expertise and streamline decision-making, with the goal of getting mission-critical gear into the hands of service members faster.

By narrowing the competition to two bidders early and now launching the sustainment RFI in parallel, the DIA is attempting to accelerate the historically sequential process. The timeline remains tight. To avoid a gap when the current fleet retires, the Royal Canadian Navy needs its first new submarine no later than 2035.

"Through this Request for Information, we are sending a clear signal: Canada will not only acquire a new submarine fleet, we will build the industrial capacity to sustain it here at home," stated the Honourable Joël Lightbound, Minister of Government Transformation. His comments underscore the dual objectives of the project: rearming the military while simultaneously rebuilding the nation's industrial base.

As the DIA reviews the final bids from Germany and South Korea, Canadian companies from coast to coast are now being asked to step forward and define their role in this nation-building enterprise. The success of the Canadian Patrol Submarine Project will not only be measured by the stealth and power of the vessels beneath the waves, but also by the strength and resilience of the industrial ecosystem built on shore.