The Government of Canada has announced the selection of Germany’s ThyssenKrupp Marine Systems (TKMS) as the preferred supplier for the procurement of up to 12 Type 212CD submarines under the Canadian Patrol Submarine Project (CPSP), with contract negotiations to follow. This will be the largest defence procurement in Canadian history, with the first four submarines expected by 2034.
The CDA Institute welcomes this important decision, which provides long-needed clarity on a critical capability requirement and will help ensure Canada can defend its interests at home and abroad for decades to come. The new fleet will replace the Victoria-class, strengthening the Royal Canadian Navy’s (RCN) ability to operate across Canada’s three oceans: the Atlantic, Pacific, and Arctic.
The state-of-the-art submarine fleet will play a vital role in safeguarding Canada’s sovereignty, conducting Arctic operations, and operating alongside allies in Europe and the Indo-Pacific. The Type 212CD program will also enhance Canada’s deterrence capabilities and overall defence posture, providing the RCN with the capabilities necessary to respond to an increasingly complex security environment. The procurement is already provisioned within Canada’s fiscal framework, which the government states will reach 4% of GDP in total defence spending by 2030, ahead of NATO’s timetable.
Partnering with TKMS will further deepen Canada’s defence relationships with Europe, particularly Germany and Norway. This cooperation will extend across NATO, where the Type 212CD will enable close interoperability with a growing community of allies operating submarines from the Type 212 family, creating opportunities for shared training, sustainment, and operational cooperation.
The procurement also presents significant economic opportunities through Canada’s Industrial and Technological Benefits policy, supporting an ecosystem of well over 100,000 well-paying jobs across the country and generating billions of dollars in economic activity over the life of the project. As a condition of the contract, the full value of Canada’s investment must be matched by TKMS investment in Canada, representing tens of billions of dollars across key domains including space, munitions, autonomous technologies, critical minerals, and R&D. If executed effectively, the program will make an important contribution to strengthening Canada’s defence industrial base.
As the project moves forward, attention must now turn to implementation. Key questions include the development of the infrastructure needed to support a fleet of up to 12 submarines, the recruitment and retention of the personnel required to operate them, and the role of industrial partnerships in maximizing economic benefits while ensuring that Canadian sovereignty and long-term sustainment remain central to the program.
The CDA Institute congratulates TKMS and the Government of Canada on reaching this important milestone. TKMS remains an important strategic partner of the CDA Institute, and we look forward to continuing to build upon this relationship in the years ahead.
