Prime Minister Mark Carney announced Monday that Canada is negotiating to procure up to 12 new submarines from German shipbuilder ThyssenKrupp Marine Systems [1].

The acquisition represents a critical modernization of Canada's naval capabilities as the government seeks to replace an aging submarine fleet. This move ensures the country maintains underwater surveillance and deterrence capabilities in an evolving global security environment.

During a press briefing in Halifax, Nova Scotia, Carney said the government is moving forward with the German firm to secure the vessels [1]. The procurement is estimated to cost $24 billion [1], making it the largest defence purchase in Canadian history [1].

"We are negotiating to procure up to 12 submarines from German shipbuilder ThyssenKrupp Marine Systems," Carney said [1].

The selection of the German shipbuilder follows a period of evaluation involving multiple international bids. While some reports indicated the government was weighing options between German and South Korean providers, the Prime Minister confirmed the preference for the German company [2, 3].

"The reported $24-billion procurement is the largest in Canadian history," Carney said [1].

A government spokesperson said that the administration has chosen the German company to build the new fleet [2]. The deal aims to transition the Royal Canadian Navy toward more modern technology to replace legacy systems that have reached the end of their operational lifespan [2].

The procurement process focuses on enhancing long-term maritime security. By securing up to 12 vessels [1], Canada intends to increase its operational presence in both Atlantic and Pacific waters.

The reported $24-billion procurement is the largest in Canadian history.

This procurement signals a significant shift in Canada's defence spending and a strategic alignment with European naval technology. By investing $24 billion into a larger fleet of 12 submarines, Canada is addressing a long-standing capability gap in its maritime strategy, moving away from a small, aging fleet toward a more robust presence capable of sustained long-range operations.