Canada To Reshape Its Arctic Presence, Navy With German-Built Submarines


This photo illustration shows the stealthy, diamond-shaped hull of the Type 212CD submarine. TKMS

September 15, 2026
By Sentry

Key Takeaways:

Canada has chosen Germany’s TKMS for up to 12 Type 212CD conventional submarines to replace the Royal Canadian Navy’s four aging boats. Prime Minister Mark Carney announced the plan in July 2026 at CFB Halifax as NATO watches the Arctic and North Atlantic.

The 212CD, jointly designed with Norway, uses a diamond hull and diesel-plus-hydrogen fuel cells for longer submerged patrols. First four would be built in Germany, with delivery from 2034. Norway has raised its own order to six. CBC puts buy cost near $24 billion and lifetime sustainment near $100 billion.

Carney frames it as Canada’s largest defense buy, plus local maintenance and weapons work, after lifting spending to 2% of GDP with a 5% target by 2035. Germany’s Pistorius said Canada, Germany, and Norway could field 24 boats sharing Arctic and North Atlantic data. Negotiations start now; no contract is signed in the piece.

Canada has selected German manufacturer ThyssenKrupp Marine Systems (TKMS) to build a modern submarine fleet for the Royal Canadian Navy (RCN). The program includes up to 12 Type 212CD submarines that will replace the RCN’s four aging boats as NATO strengthens its stance against growing Russian activity in the Arctic and North Atlantic.

“The submarine is proven and capable, and widely used by our Allies,” Prime Minister Mark Carney said during the July 2026 announcement at Canadian Forces Base Halifax. “The type we’re moving to purchase will operate seamlessly alongside our NATO partners.”

Carney has raised Canada’s defense spending to 2% of GDP and pledged to reach 5% by 2035, which would meet the goal NATO set for members at its 2025 Hague summit.

Germany and Norway jointly developed the stealthy Type 212CD (Common Design). Its diamond-shaped hull reduces its sonar signature, and its propulsion system uses diesel engines with hydrogen fuel cell-based technology. This system allows the nonnuclear vessel to stay submerged for extended periods by generating electricity without needing air, according to the website Engineer Fix.

Canada envisions the agreement as part of a broader economic package that includes constructing maintenance facilities, establishing weapons production capabilities and expanding domestic sustainment operations, according to a CBC report. “This project is about much more than acquiring submarines. It builds Canadian industrial capacity,” Carney said. The submarines could cost about $24 billion and lifetime maintenance and sustainment could raise the total to roughly $100 billion, according to the CBC.

Carney said Canada will begin contract negotiations with TKMS immediately for what will be the nation’s largest ever defense procurement. The purchase could dramatically reshape the RCN. If TKMS delivers all 12 boats, a “full one-third to half of its fleet” would consist of the Type 212CD, according to the CBC. TKMS will build the first four submarines at its shipyards in Germany and could deliver them in 2034, according to news website Breaking Defense. Canada will become the third major operator of the Type 212CD class alongside Germany and Norway. Norway announced in December 2025 that it would increase its order for TKMS Type 212CD boats from four to six. TKMS is already building the first two submarines for the Norwegian order with an initial delivery scheduled for 2029. Officials said the interoperability of the Type 212CD submarines will help build a more coordinated Arctic deterrence network for NATO’s navies, including cooperation with the United States.


“Together, we will build the world’s largest and most advanced conventional submarine fleet,” German Minister of Defence Boris Pistorius said, according to the German news agency dpa. “Information gathered by our [nations’ planned] 24 submarines in the North Atlantic, the Arctic and the High North can be exchanged, analyzed and used quickly among us.”

German Chancellor Friedrich Merz called Canada’s purchase decision a strong signal of strategic cooperation. Canada, Germany and Norway entered a maritime security partnership in July 2024.

“In a more dangerous and divided world, Canada must be prepared to defend our interests, protect our citizens, build our economy and secure our future,” Carney said in a government statement. “To that end, we are making the largest defence procurement in our nation’s history with speed, ambition and discipline. Together with our German and Norwegian Allies, we will build at speed and scale to expand our strategic capabilities and create greater strategic autonomy.”

This article was published by Sentry

About Sentry
Sentry is a professional military magazine published by the Commander of United States Strategic Command to provide a forum for national security personnel.