German Chancellor Friedrich Merz (left) and Canada’s Prime Minister Mark Carney arrive for a joint press conference on Tuesday in Berlin.Omer Messinger/Getty Images
The Canadian government has shortlisted two companies – one from Germany and one from South Korea – as the final contenders to supply the Royal Canadian Navy with up to 12 new diesel-electric submarines.
Prime Minister Mark Carney announced the decision Tuesday in Berlin, where he met with German Chancellor Friedrich Merz.
Mr. Carney and some of his cabinet colleagues are scheduled to visit the manufacturing facility of Germany’s Thyssen Krupp Marine Systems (TKMS) Tuesday afternoon.
Opinion: Carney’s reciprocal tariff retreat might seem like a betrayal, but it makes sense
The second shortlisted company is Hanwha Ocean Co., Ltd. of South Korea and Mr. Carney said he plans to visit their facilities in October.
The Canadian government initially released an expression of interest process in September, 2024, asking companies to submit assessments of their ability to provide up to 12 submarines.
Mr. Carney said that process led the government to determine that two consortiums met what he said are the Canadian Navy’s demanding requirements.
“Because in Canada, submarine means weeks under the sea ice, as well as in the Pacific at the same time. So we need to be able to have year-round fleets in all three coasts under quite demanding conditions. So that’s how the field narrows quite quickly. So it’s a testament to both of these companies, both of these consortium, that they qualify,” he said.
Prime Minister Mark Carney says Canada plans to buy its next sub fleet from one of just two suppliers, South Korea’s Hanwha or Germany’s TKMS. (Aug. 26, 2025)
The Canadian Press
In a news release, the government said the new submarines will “ensure that Canada can detect, track, deter and, if necessary, defeat adversaries in all 3 of Canada’s oceans.”
The TKMS 212 CD submarine is being developed for the Norwegian and German navies.
The federal government previously ruled out buying nuclear-powered submarines that would have allowed Canada to operate for months underwater, but would have been considerably more expensive.
The Canadian military has said it needs 12 submarines to properly defend the country, based on the assumption that for high readiness only one of four submarines would be fit to deploy, with others under maintenance or used for training.
The government has not provided a cost estimate for the purchase, in part because price and economic benefits to Canada will be part of the negotiation process that will lead to the final selection of a supplier.
– With reports from Steven Chase and Nathan VanderKlippe