Canada named Germany’s ThyssenKrupp Marine Systems (TKMS) preferred bidder Monday to build up to 12 Type 212CD submarines for the Royal Canadian Navy, ending a competition with South Korea’s Hanwha Ocean under the Canadian Patrol Submarine Project (CPSP).
Prime Minister Carney announces the preferred supplier for the Canadian Patrol Submarine Project – the largest defence procurement in Canadian history.
Learn more: https://t.co/upKkUiQtad pic.twitter.com/MVrueRDgnE
— Prime Minister of Canada (@CanadianPM) July 6, 2026
Prime Minister Mark Carney made the announcement at Canadian Forces Base Halifax before departing for the NATO Summit in Ankara, calling it the largest defense procurement in Canadian history. He declined to disclose costs due to ongoing negotiations.
The Globe and Mail estimated the submarine contract at between $20 billion and $30 billion, with lifecycle totals for operations and maintenance potentially reaching up to $80 billion.
Both the Type 212CD and Hanwha’s KSS-III Batch II had met Canada’s military requirements. Cost, industrial offsets, and NATO interoperability determined the outcome.
The Type 212CD is built on the Type 212A design, featuring a diamond-shaped hull to minimize acoustic signature, an air-independent propulsion (AIP) system combining hydrogen fuel cells and diesel engines, six 533mm torpedo tubes, and a surface displacement of approximately 2,750 tons, roughly 65% greater than its predecessor. The boats are designed for extended under-ice Arctic operations.
Carney announced that Germany and Norway had agreed to yield their positions in the TKMS production queue, allowing Canada to take delivery of its first four submarines by 2034, ahead of TKMS’s previous commitment of 2036 and Hanwha’s projected 2035 timeline.
🇨🇦 CANADA SELECTS GERMANY’S TKMS FOR $100B SUBMARINE PROGRAM
Canadian Prime Minister Mark Carney announced Germany’s TKMS as the preferred bidder for the Canadian Patrol Submarine Project, beating South Korea’s Hanwha Ocean.
Canada plans to acquire up to 12 Type 212CD… pic.twitter.com/wwrRUEJLbl
— Mossad Commentary (@MOSSADil) July 6, 2026
“The submarine is proven and capable, and is widely used by our allies,” Carney said. “The type we’re moving to purchase, the type 212CD… will operate seamlessly along our NATO partners.”
Only one of the Royal Canadian Navy’s four Victoria-class submarines is currently operationally ready, with three undergoing maintenance. The 12 new boats will be the first brand-new submarines Canada has purchased in over sixty years.
Carney said Canada retains the right to resume negotiations with Hanwha should talks with TKMS break down.
