Canada considers purchasing 8 German submarines instead of 12

The Canadian government is considering a proposal to divide its submarine procurement into two phases, according to reports from CBC News. The plan involves a confirmed purchase of eight submarines from the German company TKMS, while postponing the decision on four additional units to a later date.

Proposed Phased Purchase

Negotiations regarding the division of the order took place in Ottawa last week between federal officials, led by the Defence Investment Agency, and representatives from TKMS and the Norwegian company Kongsberg. Three informed sources cited by CBC News stated that discussions about splitting the order began following meetings in Europe in September.

Federal officials indicated that the phased approach would allow the government to retain flexibility to review naval needs in the future. This is particularly relevant as submarine deliveries are not expected to begin until the middle of the next decade and will continue for more than twelve years. Additionally, sources told CBC News there is an ongoing debate regarding whether crewed submarines might eventually be replaced by drone technology.

Economic and Financial Implications

While the purchase of 12 submarines is estimated to cost between 20 billion and 24 billion Canadian dollars, the full lifecycle cost—including operation, maintenance, and repairs—could exceed 100 billion dollars over two decades.

TKMS previously announced in July 2026 that its offer included potential investments in Canada estimated at approximately 86 billion Canadian dollars, with total expected economic activity reaching about 167 billion dollars. These figures are economic expectations and do not represent guaranteed or already injected funds.

Proposed economic projects linked to the German offer include:

• A large carbon capture facility in Alberta using TKMS technology.
• The modernization and expansion of the Port of Churchill in Manitoba to support the export of critical minerals and liquefied natural gas.
• The establishment of a factory in Canada to produce heavy torpedoes.
• Joint development and testing of hypersonic missile technologies.
• Specialized submarine maintenance facilities on Canada's eastern and western coasts.

Dave Perry, president of the Canadian Global Affairs Institute, noted that dividing the order could result in losing economies of scale and reducing the scale of promised economic benefits.

Current Status of Negotiations

Prime Minister Mark Carney announced on July 6, 2026, that TKMS was the preferred supplier for the purchase of up to 12 Type 212CD submarines, following competition with the South Korean company Hanwha Ocean. The goal is to replace the aging Victoria-Class fleet to monitor the Atlantic, Pacific, and Arctic Oceans.

TKMS stated that negotiations are proceeding productively but noted it is premature to comment on specific details or outcomes. The Defence Investment Agency confirmed that negotiations are ongoing to secure a contract that ensures maximum benefits for Canadians, but declined to comment on specific negotiation details.

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Sources

• arabcanadanews.ca: Canada is considering purchasing 8 German submarin... | ACN
• ca.news.yahoo.com: Canada looking to Germany for 8 submarines up front and 4 later: sources - Yahoo News Canada

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.