Canada signs Arctic defence radar deal with Australia
Tue, 23rd Jun 2026 (Today)
The Canadian Government has signed agreements with Australia and BAE Systems Australia to acquire over-the-horizon radar for its Arctic surveillance program, moving the Arctic Over-the-Horizon Radar system into the delivery phase.
The arrangements were signed in Canberra by Stephen Fuhr, Canada's Secretary of State for Defence Procurement, and Richard Marles, Australia's Deputy Prime Minister and Minister for Defence.
Canada has committed to spending CAD $2.5 billion with Australia to procure the radar system. BAE Systems Australia is due to begin work on 1 July 2026, and Canada is targeting initial operational capability by December 2029.
The project is intended to provide long-range surveillance of airborne and maritime threats approaching Canada's northern and Arctic regions, while improving domain awareness and providing Canadian and North American defence authorities with earlier warning.
Unlike conventional radar, over-the-horizon radar uses signals refracted through the ionosphere, allowing it to detect objects beyond the curvature of the Earth. Canada has described the technology as important for monitoring its northern approaches, where distances are vast and warning times can be limited.
The wider program carries an investment plan of more than CAD $6 billion, according to an earlier announcement by the prime minister. Officials described the procurement as the first time Canada has led a major capability development within NORAD, the binational command shared with the United States.
Under the agreement, BAE Systems Australia will work with Canadian companies to build domestic expertise in the radar system.
Ottawa estimates the program will contribute nearly CAD $290 million a year to Canada's gross domestic product and support about 2,270 jobs annually between 2026 and 2033. The industrial and technological benefits agreement is meant to ensure work and knowledge transfer reach Canadian businesses, including smaller suppliers.
The feds stated this procurement also aligns with Canada's Defence Industrial Strategy, which supports working with allied governments and overseas contractors when domestic capacity is limited.
David McGuinty, Canada's Minister of National Defence, said the system would strengthen both sovereignty and continental defence.
"Through this partnership with Australia to deliver advanced radar capabilities, we are enhancing the Canadian Armed Forces' ability to detect, deter, and respond to emerging threats with greater speed, reach, and precision. This investment reinforces our commitment to Arctic sovereignty, strengthens continental defence through NORAD, and ensures Canada remains prepared to meet evolving security challenges and protect our national interests at home and abroad," said McGuinty.
For Australia, the agreement is being presented as a landmark defence export. Richard Marles, Australia's Deputy Prime Minister and Minister for Defence, called it the largest such agreement in the country's history and pointed to the long-running defence relationship between the two countries.
Pat Conroy, Australia's Minister for Defence Industry and Pacific Island Affairs, tied the deal to the Jindalee Operational Radar Network, the system on which Australia's over-the-horizon radar expertise is based.
"BAE Systems Australia, as the key industry partner, plays a central role in reinforcing Australia's position as a global leader in OTHR technology. Today's agreement directly supports the ongoing evolution and resilience of the Jindalee Operational Radar Network," said Conroy.