HALIFAX – Prime Minister Mark Carney has named German submarine manufacturer TKMS as the preferred bidder to supply the navy’s next fleet of subs.
Carney confirmed the news at a Canadian Armed Forces base in Halifax today, stopping on his way to the annual NATO summit in Turkey.
The prime minister says it was a close race and a difficult decision to make between TKMS and its rival bidder Hanwha, a South Korean defence conglomerate.
He says the procurement will be “the largest in Canadian history” and will have “far and away the greatest economic impact across Canada.”
But the federal government is unwilling to talk about the total price tag or exactly how many boats it will buy — those details will be part of negotiations between Canada and TKMS.
Carney says Ottawa is booking the estimated cost for up to 12 submarines into the federal budget — a purchase that will allow Canada to spend the equivalent of four per cent of its GDP on defence by the year 2030.
This report by The Canadian Press was first published July 6, 2026.
