Canada selects Germany’s ThyssenKrupp to build new submarine fleet

Canada has selected Germany's ThyssenKrupp Marine Systems (TKMS) as the preferred bidder to replace the Royal Canadian Navy's four Victoria-class submarines with a fleet of up to a dozen Type 212CD submarines. The announcement was made by Canadian Prime Minister Mark Carney in Halifax, Nova Scotia, en route to the NATO Summit in Ankara. Carney stated the submarine is proven and capable and will operate seamlessly with NATO partners. While he declined to reveal the estimated cost, citing ongoing negotiations, The Globe and Mail estimated the contract could be worth between $20 billion and $30 billion, making it the largest defense procurement in Canadian history. The decision follows a lengthy tender process under the Canadian Patrol Submarine Project (CPSP), which also included a proposal from South Korea's Hanwha Ocean. Carney noted that Canada retains the right to switch to Hanwha if negotiations with TKMS falter. The purchase is groundbreaking as Canada has not acquired newly built submarines in over 60 years. The Type 212CD features a diamond-shaped hull and a propulsion system combining diesel engines with hydrogen fuel cell-based air-independent technology. As part of the deal, Germany and Norway have offered to give up their spot in line for some TKMS subs, allowing Canada to get its first four by 2034, earlier than originally proposed. The announcement comes just before the NATO Summit, where Secretary General Mark Rutte emphasized the need for allies to present credible plans to reach defense spending goals.