# Canada Negotiates German Submarine Purchase

Canada is negotiating with preferred supplier Thyssenkrupp Marine Systems (TKMS) to acquire German Type 212CD submarines for the Royal Canadian Navy. The proposed phased purchase would commit initially to eight submarines, with four more considered later; the estimated purchase cost for all 12 is $20–$24 billion, while lifecycle costs could exceed $100 billion. Canada is targeting a contract by the end of 2027—about 14 months from now—and deliveries are not expected to begin until the mid-2030s.

- **Why this matters:** The final quantity and timing could affect TKMS’s supplier network and the scale and timing of related Canadian industrial commitments.
- Companies supplying submarine systems, components, or support services can assess potential opportunities tied to TKMS and the proposed Canadian industrial benefits, while recognizing that the contract structure remains under negotiation.
- The proposed long delivery timeline and lifecycle costs make the acquisition relevant to suppliers planning capacity and long-term support offerings for the Canadian naval market.

**Jurisdictions:** international
**Industries:** Defense & Military
**Published:** November 04, 2026

### Government Entities
- Government of Canada
- Defence Investment Agency of Canada
- Royal Canadian Navy
- Government of Germany

### Vendors
- Thyssenkrupp Marine Systems (TKMS) (preferred supplier)
- Hanwha Ocean (competing bidder)
- Kongsberg ()

### Sources
- [Canada looking to Germany for 8 submarines up front and 4 later: sources | Radio-Canada.ca](https://ici.radio-canada.ca/rci/en/news/2298206/canada-looking-to-germany-for-8-submarines-up-front-and-4-later-sources) - Radio-Canada
- [Canada plans to buy 8 submarines upfront and 4 later from Germany: Reports](https://www.wionews.com/world/canada-plans-to-buy-8-submarines-upfront-and-4-later-from-germany-reports-1793806851429/amp) - WION