Canadian negotiators are looking to split the order for Type 212CD submarines from Germany into two groups, securing an initial purchase of eight subs and discussing the possibility of adding another four later, as reported by .
This proposal emerged during a series of meetings last week in Ottawa involving federal officials – led by the Defence Investment Agency – alongside representatives from German submarine manufacturer TKMS and Norwegian defense firm Kongsberg.
According to three confidential sources who spoke with , discussions about this split order have been ongoing for several weeks, following a round of talks in Europe last September.
German officials are currently assessing how a smaller order might impact the $86 billion investment in Canada that was promised last summer.
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Carney chooses German submarines for Canadian navy fleet
Prime Minister Mark Carney stated that Canada is negotiating to acquire ‘up to 12’ submarines from Thyssen Krupp Marine Systems. While addressing reporters in Halifax, Carney mentioned that this $24 billion procurement could be the ‘largest in Canadian history.’
Meanwhile, TKMS is consulting its 400 suppliers on how a potentially reduced order may affect them.
When Prime Minister Mark Carney announced last July his government’s preference for TKMS over South Korea’s Hanwha Ocean, he emphasized that Canada was committed to purchasing “up to 12 submarines.”
The confidential sources indicate that since deliveries won’t begin until the mid-2030s and will likely extend over more than ten years afterward, federal officials want to keep options open for future governments to make decisions.
Additionally, there’s discussion regarding whether manned submarines might eventually be substituted by more effective or cost-efficient drone technology.
The total cost for acquiring 12 new submarines to replace the aging Victoria-Class boats is estimated between $20 billion and $24 billion. The overall expense – including operations, maintenance, and repairs – could exceed $100 billion over twenty years.
One source indicated that budget considerations are also a factor on the Canadian side.
The navy has determined it needs 12 boats because it expects to be tasked with patrolling Canada’s three-ocean coastline while also participating in allied missions abroad, particularly in the Indo-Pacific region.
A spokesperson for Stephen Fuhr, Secretary of State for Defence Procurement, reiterated that the government’s commitment is still focused on “up to 12 modern submarines that will help protect Canadians by replacing the aging Victoria-Class fleet.”
Sofiya Sapeha mentioned that the Defence Investment Agency continues discussions with its preferred supplier “and is working towards securing a contract that brings maximum benefits for Canadians across the country.”
Sapeha added: “As we’re still deep into negotiations, we cannot comment on their specifics or current status.”
8 Subs Still Considered ‘A Very Large Number’
Carney set a target date of no later than late 2027 to finalize a contract.
One source familiar with these discussions noted that throughout negotiations leading up to this point, federal representatives have consistently expressed interest in “up to 12” vessels and affirmed that an upfront commitment of eight remains “a very large number” of submarines.
A representative from TKMS confirmed negotiations with Canada are proceeding smoothly but chose not to provide further details.
‘The Canadian Patrol Submarine Project aims at acquiring 12 submarines designed to enhance protection for Canadians by replacing our outdated Victoria-Class fleet,’ stated Andrew Bernardo.
Bernardo went on: ‘TKMS is diligently collaborating with Canada’s government towards finalizing an agreement. As partners, we remain fully involved throughout this process. Given ongoing negotiations, it would be premature to discuss specific details or possible outcomes.’
Sofiya Sapeha said: ‘Negotiations continue productively and our focus lies on building a long-term strategic partnership while maximizing opportunities available within Canadian industries.’
