Key facts
- Canada is increasing defense spending by an additional $60 billion over five years.
- The government aims to foster domestic defense supply chains and reduce reliance on U.S. contractors.
- Companies are developing products like helmet covers, drones, and AI-powered robots for military use.
- Canada has announced deals for radar planes from Sweden and submarines from Germany.
- The strategy aims to create 125,000 jobs and triple the defense industry's size over a decade.
Canada is undergoing a significant shift in its defense industry, marked by increased military spending and a strategic push to bolster domestic capabilities and reduce reliance on U.S. suppliers. This move comes amid fraying relations with Washington, highlighted by recent tariff escalations.
Prime Minister Mark Carney's defense industrial strategy earmarks an additional $60 billion over five years, a substantial increase for Canada, which has historically focused on peacekeeping. The government is actively supporting local companies to enter and expand within the defense and security supply chains. This initiative is already visible, with companies like Wuxly, known for luxury parkas, now producing helmet covers and military gear for the Canadian Armed Forces, including specialized female uniforms for Ukraine.
Beyond apparel, Canadian startups and established firms are developing advanced technologies such as remote sensors for the Arctic, drones for troop resupply, and autonomous robots. New Frontier Robotics, for instance, is creating AI-powered mobile manipulator robots with potential dual-use military and civilian applications, particularly for hazardous environments like the Arctic. This focus on innovation in the North is a key component of Canada's strategy to assert sovereignty in the region.
The strategy aims for a generational shift, envisioning investments exceeding half a trillion dollars over the next decade, creating an estimated 125,000 jobs and tripling the size of the country's defense industry. It prioritizes developing "sovereign capabilities" in areas like aerospace, robotics, and unmanned systems. Canada is also diversifying its international partnerships, announcing deals for radar planes from Sweden's Saab and submarines from Germany's ThyssenKrupp, signaling a move away from exclusive reliance on U.S. contractors.