Canada is set to purchase 12 advanced submarines from German defense manufacturer TKMS (Thyssenkrupp Marine Systems) in a multi-billion-euro agreement announced ahead of the NATO Summit in Ankara.
According to Canada’s The Globe and Mail, TKMS won the competition over South Korean shipbuilder Hanwha Ocean after months of bidding. Canada plans to acquire the Type 212CD submarines, which have also been ordered by the German and Norwegian navies. The project is estimated to be worth more than €10 billion.
Ahead of the announcement, the German government expressed confidence that Ottawa would select TKMS, describing the agreement as a major strategic project that would strengthen German-Canadian ties for decades.
A government spokesperson said Chancellor Friedrich Merz had invested significant political effort in securing the deal, highlighting its importance for transatlantic cooperation.
Germany’s Defense Minister Boris Pistorius promoted the submarines during a recent visit to Canada, describing the Type 212CD as unmatched among conventional submarines due to their stealth capabilities and advanced lithium-ion battery systems, which allow them to operate silently for weeks.
TKMS CEO Oliver Burkhard said the agreement could become the largest submarine contract ever awarded between NATO partners. Negotiations reportedly extended beyond submarines to include potential cooperation in critical minerals, mining, artificial intelligence, and electric vehicle battery production.
Beyond its commercial value, Berlin sees the deal as a strategic boost for NATO at a time when Europe is assuming greater responsibility for defense while the United States reduces part of its military commitments.
The agreement will also deepen defense cooperation between Canada, Germany, and Norway, supporting NATO’s northern flank and promoting greater interoperability through standardized military systems, including data sharing, crew training, and maintenance.
Germany and Norway have already ordered six Type 212CD submarines each. Canada’s purchase will double total production to 24 submarines.
Following reports of the agreement, TKMS shares rose by as much as 11%.
The contract is also expected to create new jobs at TKMS’s shipyard in Wismar, Germany, which was converted from cruise ship construction to military and special-purpose vessel production after the company acquired the facility in 2022.
