Defense partnership diversification strategy
The Canadian government is actively considering the possibility of purchasing new diesel-electric submarines from international manufacturers, with South Korea and Germany being the main contenders. The purchase decision is part of a broader strategy to "diversify defense partnerships" aimed at reducing reliance on traditional suppliers and strengthening cooperation with allies with advanced technology.
This approach reflects global changes in Canada's defense policy amid growing tensions in the Arctic and Atlantic.
Why Canada is looking for alternatives to traditional suppliers
For a long time, Canada relied on Western allies such as the United States and Britain for arms supplies. However, the need to modernize the outdated Victoria-class submarine fleet requires new solutions. The submarine replacement program has faced delays and rising costs, prompting the government to seek more flexible and technologically advanced options.
Choosing between South Korea and Germany allows Canada to evaluate offers in terms of cost, delivery time, technology level and transfer conditions.
South Korea and Germany — who offers more
South Korea is expected to receive an offer from Hanwha Ocean (formerly DSME), which offers upgraded KSS-III class submarines equipped with an AIP (air-independent power plant) system and vertical cruise missile launchers. These boats are already being supplied to Australia under the SSN-AUKUS program.
On the German side, ThyssenKrupp Marine Systems (TKMS) with Type 212CD class submarines, which are being developed for Norway and Germany, is a likely supplier. These boats are also equipped with AIP, have a low acoustic footprint and high autonomy, which makes them ideal for patrolling in Arctic and coastal waters.
Unknown cost and timing of the project
The official estimated cost of the project has not been disclosed, due to the early stage of negotiations and the strategic nature of the purchase. However, we are talking about a multibillion-dollar deal that will become one of the largest in the history of the Canadian defense industry.
A decision on the final supplier is expected in the coming years, after the completion of the technical and strategic evaluation of both proposals.
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