In a significant military procurement move, Canada is poised to decide on a contract for twelve submarines by the end of June 2026. With two bidders in the fray—South Korea’s Hanwha Ocean and Germany’s ThyssenKrupp Marine Systems (TKMS)—both nations are intensifying their efforts to secure what could be one of the largest military contracts in Canadian history, estimated to range between $60 billion and $120 billion over the submarines’ operational lifespan.
Intense Competition for a Lucrative Contract
Both South Korea and Germany are making strategic moves to bolster their bids. The German Defence Minister, Boris Pistorius, is set to visit Ottawa at the end of May, coinciding with the CANSEC defence trade show. This visit follows earlier discussions in Canada by Vice-Chancellor Lars Klingbeil, who promoted TKMS’s offering, a joint German-Norwegian 212CD diesel-electric submarine, as meeting Canada’s security and industrial needs.
In a bold display of commitment, South Korea has dispatched its KSS-III Batch-II submarine, the Dosan Ahn Changho, on a 14,000-kilometre journey from Jinhae Naval Base to Canadian Forces Base Esquimalt, where it is expected to arrive in late May. The submarine will participate in joint exercises with the Royal Canadian
