en.Wedoany.com Reported - In an exceptionally rapid procurement process for such a high-value contract, Canada appears to have ultimately selected the German-designed Type 212CD submarine over South Korea's Hanwha Ocean KSS-III class. The selection of the Type 212CD as Canada's preferred option (pending final contract signing) comes just days before the NATO summit in Ankara, strongly signaling Canada's commitment to enhancing its defense capabilities. The initial procurement cost for Canada's batch of submarines is estimated at approximately $24 billion.
The 12 new submarines Canada will order are to be built by a German-Norwegian joint venture, with Canada joining this collaboration. The German-Norwegian cooperation on submarine procurement began with an earlier version based on the same design as the much smaller Type 212A. Building on the success of this partnership, it has been expanded, with ThyssenKrupp Marine Systems (TKMS) leading the hull and the hydrogen fuel cell-based air-independent propulsion system, with construction taking place in Kiel. The combat system is being jointly developed by a TKMS subsidiary and Kongsberg. Most of the submarines for the joint German-Norwegian fleet will be based at Haakonsvern in Norway and supported throughout their lifecycle. It is currently unclear how Canada will participate in the construction and support efforts, which will inevitably become a trilateral undertaking. However, since Germany and Norway have each ordered six submarines, Canada's order of 12 will make it an equal partner with the other two nations. The first Type 212CD submarine for the Norwegian Navy is scheduled to be launched in 2027.
The trilateral cooperation between Germany, Norway, and Canada, encompassing construction, in-service maintenance, and operational deployment, is in some respects similar to the arrangements under the AUKUS submarine agreement. However, Canada has reservations about adopting a nuclear-powered route, including considerations of stealth and tactics, while also needing to replace its aging Victoria-class submarines on a more urgent timeline than a nuclear-powered path would allow.
The new agreement is more cost-effective, offers faster delivery, and carries significant political dimensions. Following President Trump's threats to make Canada the 51st U.S. state, Prime Minister Carney has been keen to strengthen Canada's ties with Europe, even if it means disappointing South Korea under the current circumstances. However, a robust fleet of 12 submarines will enable Canada to significantly enhance its submarine presence in both the Pacific and Atlantic Oceans.
Germany has played a leading role in cultivating Canada's interest in deepening political ties with Europe. The submarine deal was likely at the top of the agenda when German Defense Minister Boris Pistorius led a strong delegation of senior German defense industry leaders to CANSEC 2026 in Ottawa in late May. Further transatlantic defense cooperation can be anticipated.
