Canada names ThyssenKrupp Marine Systems as preferred supplier for up to 12 submarines, ahead of NATO summit

Canada on Monday named Germany’s ThyssenKrupp Marine Systems as the preferred supplier for up to 12 submarines, launching the next phase of a major procurement ahead of the NATO summit where allies are expected to face continued pressure to align concrete defense spending plans with Alliance targets. Prime Minister Mark Carney made the announcement at a military base in Halifax, Nova Scotia, calling it the largest military procurement in Canadian history.

Carney said the decision supports Canada’s defense needs in the Arctic and with NATO operations, describing the ThyssenKrupp platform as “proven and capable.” He also argued that interoperability would be strengthened because many NATO countries already operate conventionally powered submarines built by the same manufacturer.

According to Carney, the German firm’s selection over South Korea’s Hanwha Ocean came as Canada sought a platform that could be integrated more directly into allied capabilities. He said ThyssenKrupp provides submarines to more than a third of the NATO alliance and characterized the company as a leading submarine provider to navies worldwide.

The preferred-supplier designation does not end the process. Carney said Canada will now enter further negotiations, and the procurement would require additional steps before contracts are finalized and construction schedules are set.

Carney linked the submarine plan to Canada’s shift in defense spending targets after years of lagging behind NATO benchmarks. He said Canada has pledged to increase defense spending to 5% of gross domestic product by 2035, and he noted the government has already budgeted a path to reach 4% of GDP in total spending by 2030, ahead of NATO’s timetable. Canada reached NATO’s previous 2% spending target this year, Carney said.

The prime minister also said the German and Norwegian governments have offered to make available some production slots, with an expectation that Canada could receive submarines earlier than it otherwise would. The remarks suggested Canada is seeking ways to reduce delivery timing risk while still pursuing a platform it says can meet operational needs for Arctic waters and allied missions.

Canada’s selection comes as NATO governments weigh how to translate spending commitments into procurement outcomes that can keep fleets supplied and interoperable. In that context, submarine capacity, training pipelines, and maintenance systems can take years to build, making the next phase of negotiations central to whether Canada can align timelines with its stated fiscal targets.