Canada has chosen Germany’s Thyssenkrupp Marine Systems to build its new multi-billion-dollar fleet of submarines, Canadian media reported, with Prime Minister Mark Carney set to make the announcement later Monday.
Ottawa opened the bidding process for 12 new military submarines in 2024, warning its existing British-built Victoria-class vessels needed to be decommissioned by the mid-2030s.
In August 2025, Carney’s government named the two finalists: TKMS and Hanwha Ocean Co. of South Korea.
Carney is making a security-related announcement in Halifax later Monday, where he is expected to name the bid winner, before heading to the NATO summit in Turkey.
Multiple outlets, including the CBC and The Globe and Mail, have reported that TKMS won the bid, citing unnamed sources.
Carney’s office did not immediately respond to a request seeking confirmation.
For Wesley Wark, a Canadian defence policy expert at the Centre for International Governance Innovation, the German bid always had the upper hand, given Canada’s desire to bolster alliances within a NATO facing unprecedented pressure from U.S. President Donald Trump.
“I think the NATO element was ultimately the decider,” Wark said.
Carney has advanced historic increases in military spending since taking office last year, and his government has already hit NATO’s minimum benchmark of two per cent of GDP committed to defence.
The prime minister has also warned that Canada relies too heavily on the United States for security, while seeking broader defence ties with European NATO allies.
But Wark stressed the decision may come at a cost, given the emerging importance of South Korea as an ally.
He said Carney would likely have a “tough diplomatic moment” in Turkey this week, with South Korean President Lee Jae Myung expected to attend the NATO meet.
“It’s a tough decision because for Canada, we also have Indo-Pacific commitments,” Wark said. “We’re looking to South Korea as a key partner.”
