Canada Narrows Submarine Suppliers to Germany, South Korea

Canada has shortlisted two contenders for its new submarine program, selecting a German-Norwegian partnership led by Thyssenkrupp Marine Systems (TKMS) and a South Korean supplier, Hanwha Ocean Co., as the best qualified candidates to replace its aging fleet. Prime Minister Mark Carney, after meeting with German Chancellor Friedrich Merz, emphasized the importance of economic benefits for Canada, including potential local production and maintenance contracts, as well as interoperability with NATO allies. The German-Norwegian alliance's involvement is viewed as a strategic move to enhance system standardization within NATO and increase production volumes. Alongside the submarine announcement, Canada and Germany also signed a joint declaration to strengthen cooperation on critical minerals, aiming to reduce dependence on China and Russia and bolster industrial capabilities. Carney is concurrently ramping up Canada's defense spending to meet NATO targets and mobilizing significant investments in infrastructure, energy, and digital innovation. The submarine program is a key element of Canada’s broader effort to modernize its military and deepen ties with allied nations.