FedNor funding to enhance Greater Sudbury’s participation in Canada’s defence sector
October 30, 2026 – Sudbury, ON – Federal Economic Development Agency for Northern Ontario – FedNor
The world is changing rapidly. The international rules-based order is fading, and technological change is expanding the fields of conflict. In response, Canada’s new government is focused on what we can control to protect Canada’s sovereignty, build our prosperity, and strengthen our strategic autonomy.
Today, Viviane Lapointe, Member of Parliament for Sudbury, announced a Government of Canada investment of $4.5 million to support a major expansion of NORCAT’s underground innovation centre. The announcement was made on behalf of the Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for FedNor.
Once complete, the expanded underground facility will replicate complex mining and defence-related environments so partners and businesses can validate new systems and technologies. This includes autonomous systems, advanced communications, sensing technologies, robotics, AI-enabled analytics, GPS-denied navigation, dual-use technologies, and more.
This FedNor-funded expansion will enhance NORCAT’s existing underground infrastructure, providing Canadian entrepreneurs and mining technology companies with greater access to large-scale testing and validation environments. The investment will strengthen NORCAT’s capacity to support the development and commercialization of emerging technologies, while creating opportunities to apply innovations developed for mining across other industries. These expanded capabilities will also position NORCAT to pursue future opportunities as a testing and validation site for the Canadian Armed Forces and NATO-aligned defence partners, supporting Canada’s growing need for dual-use technologies.
Funded through the Government of Canada’s Regional Defence Investment Initiative, the underground centre’s expansion will also allow NORCAT to generate new revenue, support up to 50 percent more projects annually and provide hands-on training required to build a skilled workforce and the competencies needed to adopt and deploy emerging technologies across the defence, mining, and industrial sectors.
This strategic initiative supports the Government of Canada’s commitment to strengthen Canadian businesses, reduce reliance on U.S. suppliers, and build domestic capacity for defence manufacturing and services. It also aligns with the federal government’s Defence Investment Strategy, a $6.6-billion plan to prioritize building military equipment at home, hike the share of defence contracts awarded to Canadian firms and add up to 125,000 new jobs over the next decade.
Quotes
“Canada was built by Canadians, and our defence industry is no different. By supporting domestic efforts to grow our armed forces through the Buy Canada plan for supplying the military, we are investing in Canada and in Northern Ontario. This will create real opportunities for businesses and workers, here at home. When we empower Canadian industries to thrive, we contribute to a safer future for all generations.”
- The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for FedNor
“Greater Sudbury has the potential to become a defence powerhouse, and organizations like NORCAT are a big reason we are at the forefront. This federal investment of $4.5 million supports the evolution of Canada’s only underground centre that can replicate complex mining and defence-related environments and accommodate large-scale equipment and testing. This puts Sudbury on the short list as a potential testing and validation site for the Canadian Armed Forces and NATO-aligned partners. This is not only an investment in Northern Ontario, it’s an investment in Canada’s sovereignty and our collective future.”
- Viviane Lapointe, Member of Parliament for Sudbury
“Building on decades of mining innovation, today marks a defining moment for NORCAT as we take our globally unique Underground Centre into its next chapter. With support from FedNor and the Government of Canada, we will significantly expand our capacity for technology development and hands-on training, supporting larger-scale projects and a broader range of emerging technologies. This expansion will also help Canadian companies advance dual-use technologies and pursue new opportunities in Canada’s defence sector. Ultimately, this is about helping Canadian companies bring their innovations to markets around the world, while building a skilled workforce, strengthening Canadian expertise, and creating economic opportunities here at home.”
- Pejman Salehi, CEO, NORCAT
Quick facts
The funding announced today is provided through the Government of Canada’s Regional Defence Investment Initiative. Administered by FedNor in Northern, the RDII helps small and medium-sized enterprises (SMEs) integrate into defence supply chains and enhance industrial and innovation capacity in support of Canada’s defence and security needs.
The RDII also supports investment by businesses and organizations that adapt dual-use technologies or capabilities for defence applications, as well as projects that improve the productivity and readiness of Canada’s regional defence ecosystem.
The Canadian defence industry is comprised of nearly 600 businesses that contributed over $9.6B in GDP, while supporting more than 80,000 jobs across the country. These companies include large Canadian-owned firms, Canada-based subsidiaries of large multinational companies, and many small and medium-sized businesses in Canada that employ highly skilled workers in high-quality jobs.
Noah Note: This hits close to home. I have been supported by the wonderful folks at NORCAT before, and have benefited from their contributions to my local community here. I am overjoyed to see them not only get support, but also move into the Defence ecosystem, something I have been personally been trying really hard to encourage up here.
It makes me very happy for them, but I know that Northern Ontario can do a lot more, so much more, than we already do. So my work continues!