Canada Chooses German Submarine for Fleet Modernization

WHO:

TWZ - Canadian Prime Minister Mark Carney announced the decision.

TWZ - ThyssenKrupp Marine Systems (TKMS) is the German company selected for the submarine contract.

TWZ - South Korean shipbuilder Hanwha Ocean was the competitor for the contract.

WHAT:

TWZ - The contract will also include roughly half a century of maintenance, meaning the total value could exceed $70 billion.

TWZ - Carney’s Liberal party has committed to a major increase in defense spending, pledging to allocate five percent of GDP by 2035.

ABC News - Carney has pledged to raise defense spending to 5% of gross domestic product by 2035 after Canada reached NATO’s previous 2% spending target this year.

ABC News - Carney said Germany and Norway, the two countries that jointly designed the submarines, will free up production slots to speed deliveries, allowing Canada to receive four submarines by 2034 — two years earlier than TKMS had publicly projected.

TWZ - The Type 212CD submarines will have a surface displacement of approximately 2,750 tons, representing a 65 percent increase over the Type 212A.

TWZ - The submarines will measure 240 feet in length and be armed with six 533mm torpedo tubes.

TWZ - The 12 Type 212CDs will be the first brand-new submarines Canada has ever bought.

TWZ - Canada will buy a dozen Type 212CD submarines from TKMS.

TWZ - The deal is estimated to be worth more than $12 billion.

TWZ - The total value of the contract, including maintenance, could exceed $70 billion.

TWZ - The Type 212CD submarines will replace Canada’s aging Victoria class submarines.

TWZ - The new submarines will triple the size of Canada’s submarine fleet.

WHERE:

TWZ - The submarines will be used by the Royal Canadian Navy, primarily in the Arctic and North Atlantic regions.

TWZ - The announcement was made in Canada.

WHEN:

TWZ - TKMS has stated it can build around three to four submarines per year starting in 2027.

TWZ - Canada aims to have the first new submarine delivered no later than 2035.

WHY:

TWZ - The decision also signals a broader shift in Canadian defense policy, deepening Ottawa’s military ties with Europe.

TWZ - The decision was influenced by the need to replace the unreliable Victoria class submarines.

TWZ - Canada is increasing its military presence in the Arctic and North Atlantic due to growing competition with Russia and China.

TWZ - The selection of the Type 212CD reflects a shift in Canadian defense policy towards European arms manufacturers.

HOW:

TWZ - Germany also suggested it was looking to buy potentially significant numbers of special-mission aircraft from Canada’s Bombardier, as well as to access Canadian rare earths, mining, artificial intelligence, and battery production.

TWZ - Germany offered Canada to join the Type 212CD program alongside Norway, as part of a broader defense cooperation that would more closely align Berlin and Ottawa.

TWZ - The Type 212CD features improved air-independent propulsion, new-generation batteries, and enhanced self-defense capabilities.

TWZ - The submarines will be constructed in accordance with a contract that includes negotiations between Canada’s federal government and TKMS.

(UPDATED July 7, 2026 08:08 UTC)

Canada is set to significantly enhance its defense capabilities, with Prime Minister Carney pledging to raise defense spending to five percent of GDP by 2035, following the achievement of NATO's previous two percent target this year. As part of this initiative, Canada will receive four submarines by 2034, two years ahead of schedule, thanks to Germany and Norway freeing up production slots. Additionally, Germany is exploring the purchase of special-mission aircraft from Bombardier and seeking access to Canadian resources in rare earths, mining, artificial intelligence, and battery production, marking a notable shift in Canadian defense policy and strengthening military ties with Europe.

(UPDATED July 7, 2026 01:37 UTC)

Canada is set to acquire twelve Type 212CD submarines, marking the first time the country has purchased brand-new submarines, which will feature a surface displacement of approximately 2,750 tons and measure 240 feet in length, armed with six 533mm torpedo tubes. This decision reflects a significant shift in Canadian defense policy, strengthening military ties with Europe, particularly through a partnership with Germany and Norway in the Type 212CD program. The collaboration aims to enhance defense cooperation and align the military strategies of Berlin and Ottawa more closely.

(UPDATED July 6, 2026 23:26 UTC)

Canadian Prime Minister Mark Carney announced that Canada will purchase a dozen Type 212CD submarines from the German company ThyssenKrupp Marine Systems, a deal estimated to be worth over $12 billion. This significant acquisition will replace Canada’s aging Victoria class submarines and is expected to triple the size of the Royal Canadian Navy's submarine fleet, with the first new submarine set to be delivered no later than 2035. The Type 212CD submarines will feature advanced technology, including improved air-independent propulsion and enhanced self-defense capabilities, reflecting a strategic shift in Canadian defense policy towards European arms manufacturers.