Canada Selects Germany’s ThyssenKrupp to Supply Submarines in Largest Military Procurement

By the Editorial Team · Wednesday, July 8, 2026

Canada has chosen Germany’s ThyssenKrupp Marine Systems as the preferred supplier for up to 12 new diesel-electric submarines, replacing its aging fleet in the country’s largest military procurement to date. This move supports Canada’s commitment to increase defense spending to 5% of GDP by 2035 and aims to have four new submarines operational by 2034, enhancing NATO interoperability and Arctic capabilities.

Canada has selected Germany’s ThyssenKrupp Marine Systems (TKMS) as the preferred supplier for up to 12 new submarines, marking the largest military procurement in the country’s history, Prime Minister Mark Carney announced Monday. The decision comes ahead of this week’s NATO summit, where member states face increased pressure to provide concrete plans for boosting defense budgets.

Carney highlighted the suitability of the TKMS submarines for operations in Arctic conditions and within NATO frameworks. “The submarine is proven and capable,” he said during a statement at a military base in Halifax, Nova Scotia. “TKMS provides submarines to over a third of the NATO alliance and is the leading submarine provider to navies around the world.”

The announcement signals a significant upgrade to replace Canada’s current fleet of four Victoria-class submarines, which were acquired second-hand from the United Kingdom in the late 1990s and are now aging. The new vessels are conventionally powered diesel-electric submarines, reflecting Canada’s operational requirements and clearing the path for the German bid, as no American firms competed; U.S. manufacturers focus exclusively on nuclear-powered submarines, which Canada did not seek.

ThyssenKrupp’s bid prevailed over South Korea’s Hanwha Ocean, with the German company emphasizing that its submarines already operate widely within NATO navies, enhancing interoperability across the alliance.

Canada has committed to significantly increase its defense spending in the coming years. Having met NATO’s previous target of 2% of gross domestic product (GDP) on defense for the first time this year, Carney pledged to raise spending to 5% of GDP by 2035. Canada’s current fiscal plans project defense expenditure reaching 4% of GDP by 2030, ahead of the NATO timeline.

Carney also revealed that the German and Norwegian governments have offered to allocate production slots to expedite delivery for Canada. The goal is to have four new submarines in service by 2034, accelerating the modernization of the Canadian submarine fleet.

Further contract negotiations with ThyssenKrupp Marine Systems are expected following the designation of the preferred supplier.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.