Canada has selected German shipbuilder ThyssenKrupp Marine Systems (TKMS) to supply up to 12 new submarines for the Royal Canadian Navy, Prime Minister Mark Carney announced Monday. The procurement, described by Carney as the largest in Canadian history, aims to bolster North Atlantic and Arctic security. While the official contract value remains undisclosed, German news agency DPA reports the deal is expected to be worth approximately €20 billion ($22.8 billion).
Why did Canada choose the TKMS 212CD model?
Canada opted for the TKMS 212CD submarine, a vessel originally engineered for the German and Norwegian navies. According to the manufacturer, the model is designed to provide high-level stealth capabilities combined with extended operational range and flexible weapons payloads. The decision followed a competitive process that saw TKMS beat out South Korean firm Hanwha Ocean for the contract.
The German shipbuilder stated that the selection strengthens “interoperability” within NATO, as many allies already operate TKMS-built, conventionally powered vessels. The submarines will be constructed at TKMS shipyards in Kiel and Wismar, Germany, a move the company says will create up to 1,500 jobs in the region.
The selection of the 212CD model creates a three-nation submarine fleet comprising Canada, Germany, and Norway. Defense officials expect this shared platform will allow the nations to more efficiently analyze and utilize intelligence gathered across the North Atlantic and the High North.
How does this deal shift NATO’s maritime strategy?
This partnership is framed as a key pillar for NATO’s future maritime security. Before departing for the NATO summit in Ankara, Minister Pistorius emphasized that the fleet will provide a “visible contribution to burden-sharing” within the alliance. The move comes as member states face increased pressure to modernize their naval forces amid evolving security threats.
The deal also underscores a shift in how Germany handles its defense industry. German Chancellor Friedrich Merz has prioritized the expansion of the domestic defense sector to drive economic recovery. Writing on X, Merz noted that the agreement serves as a “strong signal” for the transatlantic partnership and thanked Prime Minister Carney for his trust in German engineering.
What is the timeline for the new submarine fleet?
Canada aims to have the first of the new submarines in service by 2035. Canadian Defense Minister David McGuinty stated that the acquisition provides the Royal Canadian Navy with a “critical capability” to monitor and secure the country’s extensive coastline.
The procurement process gained momentum following a series of high-level meetings. In November 2025, Minister Pistorius visited Ottawa alongside Norwegian Defense Minister Tore Sandvik to advocate for a collaborative approach. These discussions were spurred by concerns regarding the stability of transatlantic alliances and the necessity of protecting civilian and military lines of communication against geopolitical threats.
Comparison: The Shift Toward Collective Defense
| Factor | Strategic Context |
|---|---|
| Partnership | Germany, Canada, Norway, and Denmark (joined 2024). |
| Primary Goal | Interoperability and shared intelligence in the Arctic. |
Frequently Asked Questions
- How many submarines is Canada buying?
Canada plans to purchase up to a dozen submarines from TKMS. - Who was the primary competitor for the contract?
South Korean company Hanwha Ocean competed for the bid but was ultimately passed over in favor of TKMS. - Where will the submarines be built?
Manufacturing will take place at TKMS facilities in Kiel and Wismar, Germany. - When will the submarines be operational?
The Canadian government has set a target of 2035 to bring the first units into service.
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