Canada considers split purchase of 12 submarines between Germany and South Korea.

Canada is assessing a proposal to divide its future submarine fleet between German Type 212CD and South Korean KSS-III Batch-II submarines as part of a program to acquire up to 12 boats.

Canada is considering splitting its planned purchase of 12 diesel-electric submarines equally between Germany’s TKMS Type 212CD and South Korea’s Hanwha Ocean KSS-III Batch-II proposals. The option would allocate six submarines from each supplier under the Canadian Patrol Submarine Project to replace the Victoria-class fleet. A final decision could be announced as early as April 2026 as Ottawa finishes evaluating operational, industrial, and cost implications.
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Canadian authorities are considering the option of dividing the procurement between Germany’s ThyssenKrupp Marine Systems and South Korea’s Hanwha Ocean, acquiring six submarines from each supplier. (Picture source: TKMS and Hanwha Ocean)

According to The Globe and Mail on March 2, 2026, Canadian authorities are considering the option of dividing its major submarine procurement between Germany’s ThyssenKrupp Marine Systems (TKMS) and South Korea’s Hanwha Ocean, acquiring six submarines from each supplier. Ottawa plans to acquire up to 12 conventionally powered diesel-electric submarines under the Canadian Patrol Submarine Project, a program intended to sustain undersea operations across the Atlantic, Pacific, and Arctic. Final proposals from the remaining bidders were submitted earlier in the week, and the government reserved the right to submit clarification questions until April 6, with a decision potentially occurring as early as April 4, 2026.

The submarine acquisition would constitute one of the largest military purchases in Canada’s history and is closely tied to industrial policy, trade diversification, and naval modernization objectives. The program has been structured to ensure the new submarines enter service before the current boats reach the end of their operational lives in the mid-2030s, when retirement of the Victoria-class begins. According to sources speaking anonymously, under this split option, six German-built Type 212CD submarines would patrol the Atlantic coast while six South Korean KSS-III Batch-II submarines would be based on the Pacific coast with possible deployments to the Indo-Pacific.

The submarine acquisition itself is valued at more than $24 billion, while broader lifecycle costs associated with training, infrastructure, sustainment, and upgrades extend much higher over the decades-long service life of the fleet. Defense planners have also assessed potential complications associated with operating two submarine types, including increased supply chain complexity, maintenance inventories, training pipelines, and logistical support requirements. Prime Minister Mark Carney previously noted that operating a single submarine class would generate efficiency advantages in maintenance and economies of scale, while government officials continue evaluating which structure best aligns with Canada’s operational and economic priorities.

The Canadian Patrol Submarine Project (CPSP) was formally launched in 2021 to replace Canada’s four Victoria-class submarines, HMCS Victoria, Windsor, Chicoutimi, and Corner Brook. These submarines were acquired secondhand from the United Kingdom during the late 1990s and early 2000s and represent Canada’s only operational undersea warfare capability. Their age, maintenance demands, and modernization requirements have constrained operational availability, with the Canadian Navy often able to maintain only one submarine fully mission-ready at a time. Canada’s maritime geography includes the world’s longest coastline and responsibility for three ocean approaches, which place persistent surveillance and deterrence requirements on the navy.

Increasing activity in the Arctic, including expanding naval presence from other states as sea ice recedes, has further reinforced the requirement for stealthier underwater surveillance and intelligence gathering capabilities across northern waters. The CPSP progressed rapidly compared with earlier Canadian defense acquisitions. The initial information request for industry participation was issued in September 2024 after the project framework had been established in 2021. In August 2025, the competition narrowed to two companies that met the navy’s operational requirements for a stealthy, Arctic-capable diesel-electric submarine: South Korea’s Hanwha Ocean and Germany’s ThyssenKrupp Marine Systems, the latter working with Norway.

Canada intends to have the first new submarine delivered by 2035 to avoid a capability gap when the Victoria-class begins retirement. If delivery timelines slip, the Canadian Navy could face a period without sufficient operational submarines, forcing temporary mitigation measures similar to those used when Canada lost naval refuelling capability in 2015-2016 before replacement vessels became available. Germany’s ThyssenKrupp Marine Systems has offered the Type 212CD submarine developed jointly with Norway. The vessel measures roughly 73 meters in length with a beam of 10 meters and a submerged displacement of about 2,800 tonnes. Propulsion combines diesel engines with lithium-ion batteries and a polymer electrolyte membrane fuel-cell air-independent propulsion system, enabling submerged endurance of up to 41 days.

The German submarine includes six 533 mm torpedo tubes capable of firing heavyweight torpedoes, missiles, and unmanned underwater vehicles, depending on configuration. The combat system is developed by the KTA Naval Systems consortium involving TKMS, Atlas Elektronik, and Kongsberg, and the submarine integrates advanced optronic masts and sonar suites optimized for navigation, mine avoidance, and submarine detection. TKMS has said it could deliver the first submarine well before 2035, potentially as soon as 2032, with a subsequent ramp-up. On the other hand, South Korea’s Hanwha Ocean is offering the KSS-III Batch-II submarine, an ocean-going class displacing about 3,600 tonnes surfaced and more than 4,000 tonnes submerged.

The South Korean submarine is roughly 89 meters long and incorporates lithium-ion battery technology combined with air-independent propulsion to extend submerged endurance beyond three weeks. The design includes six 533 mm torpedo tubes and a vertical launch system capable of carrying multiple missile types depending on configuration. Operational range exceeds 7,000 nautical miles, enabling long-distance patrols across the Pacific and Atlantic. Hanwha indicated that if a contract is signed in 2026, the first submarine could be delivered by 2032 and four boats delivered by 2035, with additional submarines produced annually thereafter to complete the planned fleet of up to 12 vessels.

Operational requirements for the future CPSP submarine fleet emphasize endurance, stealth, and long-range patrol capability across Canada’s three-ocean environment. Submarines must be capable of conducting covert patrols over distances exceeding 7,000 nautical miles, while remaining submerged for more than 21 days and sustaining missions lasting up to 60 days without external support. The vessels must operate with a mixed-gender crew of at least 60 personnel and integrate several weapons systems, including torpedoes and missiles. Additional requirements include the ability to launch and recover unmanned underwater vehicles and maintain secure communications compatible with U.S. and NATO maritime systems.

These capabilities are intended to improve Canada's intelligence collection, anti-submarine warfare operations, and coordinated maritime surveillance across the North Atlantic, Arctic approaches, and Pacific theatre. Industrial participation and economic investment also form a central element of the submarine competition, as Canada now requires that major defense acquisitions generate long-term domestic economic activity under its Industrial and Technological Benefits policy. For instance, Ottawa requested that both Germany and South Korea incorporate automotive sector investment commitments into their proposals to support domestic manufacturing affected by U.S. tariffs on steel, aluminum, and automobiles.

Germany has discussed expanded automotive production in Canada, while Volkswagen is already building an electric vehicle battery facility in St. Thomas, Ontario, through its PowerCo subsidiary. South Korea’s Hyundai Motor Group signed a memorandum of understanding with Canada to cooperate on the production of automobiles, electric vehicles, batteries, and hydrogen-powered vehicles as part of wider industrial cooperation tied to the submarine bid. Hanwha Ocean has expanded its proposal through multiple agreements with Canadian companies across several sectors. A memorandum of understanding with Algoma Steel includes $275 million in financial support for a new structural steel beam mill and commitments to purchase Canadian steel for submarine construction and maintenance infrastructure on both coasts if the contract is awarded.

The arrangement has been valued at $345 million and requires Algoma to pay Hanwha Ocean 3 percent of net sales from the facility for ten years after its establishment. Algoma Steel experienced layoffs affecting about 1,000 workers after U.S. tariffs disrupted its access to the American market, while federal and provincial authorities provided $500 million in financial support. Hanwha Systems also established cooperation agreements with Canadian companies, including Telesat, MDA Space, Cohere, and PV Labs. However, Germany’s TKMS has also developed several industrial partnerships in Canada linked to its proposal for the Canadian Patrol Submarine Project.

For instance, the German shipbuilder signed a cooperation agreement with the Canadian artificial intelligence company Cohere to explore integrating AI-enabled decision-support tools, information management systems, and training interfaces for submarine crews. TKMS also concluded a teaming arrangement with Quebec-based manufacturer Marmen covering potential manufacturing activities and supply-chain participation associated with submarine construction and long-term sustainment. The company indicated that Canadian participation would extend to maintenance, manufacturing, and supply contracts integrated into the fleet's lifecycle support structure.

In parallel, TKMS highlighted collaboration with Kongsberg Geospatial Ltd., the Canadian subsidiary of Norway’s Kongsberg group, to support geospatial and operational software functions relevant to naval systems and mission planning. TKMS also signed agreements with Seaspan Shipyards covering long-term submarine maintenance and lifecycle sustainment in Canada, and with Magellan Aerospace concerning potential heavyweight torpedo production and in-service support. Additional cooperation with Canadian industry includes EllisDon, to develop the infrastructure required for submarine maintenance, sustainment, and training facilities in Canada.

Written by Jérôme Brahy

Jérôme Brahy is a defense analyst and documentalist at Army Recognition. He specializes in naval modernization, aviation, drones, armored vehicles, and artillery, with a focus on strategic developments in the United States, China, Ukraine, Russia, Türkiye, and Belgium. His analyses go beyond the facts, providing context, identifying key actors, and explaining why defense news matters on a global scale.