Prime Minister Mark Carney said Monday that Canada will partner with German shipbuilder ThyssenKrupp Marine Systems to build a new submarine fleet.

The procurement marks a strategic shift in Canada's defense posture. By diversifying its naval technology and strengthening ties with European NATO partners, Canada aims to reduce its traditional reliance on the U.S. for maritime security.

The agreement involves the construction of 12 submarines [1]. This multi-billion-dollar contract [2] is designed to expand Canada's naval capabilities and ensure the country can maintain a persistent presence in its territorial waters.

Carney said the announcement in Halifax, a primary hub for the Royal Canadian Navy. The decision comes as Canada prepares for a NATO summit in Turkey, where defense cooperation among allies will be a central theme.

Reports on the selection process vary regarding the specific partners involved. Some sources indicate the government chose ThyssenKrupp Marine Systems exclusively [1], while other reports suggest the selection was a joint bid involving both Germany and Norway [3].

The transition to a new fleet is intended to modernize the Canadian military's underwater capabilities. The government said the investment is necessary to address evolving security threats in the North Atlantic, and Arctic regions.

This procurement process follows years of evaluation to replace aging vessels. The selection of a European partner reflects a broader goal to integrate Canadian defense infrastructure more closely with the industrial bases of other NATO members.

Canada will partner with German shipbuilder ThyssenKrupp Marine Systems to build a new submarine fleet.

This procurement represents a significant geopolitical pivot for Canada. By selecting a European partner over a North American one, Canada is signaling a desire for greater strategic autonomy and deeper integration with European security architectures. The scale of the fleet—12 vessels—suggests an ambition to project power more effectively across the Atlantic and Arctic, moving beyond a purely coastal defense strategy.