Official: The Government of Canada takes the next step as part of the Canadian Patrol Submarine Project, downselects TKMS and Hanwha
Usually I save my notes for the end lol
The Government of Canada has officially confirmed what TNSR broke yesterday. TKMS and Hanwha Ocean have been downselected as Canada’s two qualified suppliers for the Canadian Patrol Submarine project.
This comes after a year of heavy engagement, and a very busy summer for the team working on CPSP, who has worked tirelessly through the summer to get through this process. While the government has not provided an updated timeline, ot is my understanding that a contract award by Fall 2026 is now expected, two years ahead of schedule to what was originally anticipated.
We first reported that there would be a submarine announcement before the end od the summer several weeks ago, and further confirmed todays announcement yesterday. At this time government officials have yet to confirm what process the rest of the procurement will take.
Prime Minister Mark Carney, however, will be touring TKMS shupyard in Kiel today. He will further be visiting South Korea in October where he will do the same for Hanwha. The Prime Minister is taking a proactive role in the process, personally desiring to see the facilities and meet officials himself.
Of course for many of us this has been a two company competition for a long time. TKMS and Hanwha have always been the two logical competitors with the capabilities and products abailable not just to meet the tight timelines that CPSP set out, but also to provide maximum benefit to Canada.
I have reached out to both TKMS and Hanwha for statements. At the time of this writing I have not recieved them. The process now though will be to get through October and the visit from Carney. Admiral Topshee recently mentioned the desire to see the project awarded this year.
That will be a tight, but now not impossible timeline, depending on how fast the governemnt wants to move. The ball is in their court there. We should be expected the project to now move forward quickly.
Downselecting like this is aimed at quickening the procurement timeline, cutting out the bloat and process of dealing with multiple co.oanies who might not meet requirements.
It is the necessary step to take in this case. TKMS and Hanwha, let's be real, were the only two companies being seriously considered. There was zero need to go through the process allowing companies like Navantia and Saab to bid and slow it down.
Its a step that the previous governement often failed to take. One I am happy to see is being done more often and seriously. You really do have to take the steps you can to speed up the process.
Anywho, we're down to two. I wont get in to both subs and such. That deserves its own seperate post. We've talked a bit on it. The timeline is now there though, and the pathway to a sub award this year is now open for play.
Given the number of other nations currently looking at both companies for submarines, and the limited space both have, ordering sooner than later ensures our spot in the line, and makes sure we can have priority when it comes to delivery.
Argentina, Morocco, Poland, Greece, and soon to be countries like Denmark are all looking for subs, and both companies seem poised to offer solutions. Slots can very much fill up fast if you arent careful and quickly leave you behind.
So the sooner we can identify a preferred supplier the better. September is looking to be a big month. I thought this would be in the first week, they came at me one early. There is no break for Noah lol. Carney keeps me working with all these trips and announcements.
We should be hearing TKMS announce its first Canadian partners soon as well. The company has teased it. They've been hunting and rumors are they already have some signed on. We will see if they keep that close to theor chest.
Hanwha in the meantime has already build out a very impressive roster, including the likes of Blackberry, L3 Harris, Curtiss-Wright, Babcock and others. Hanwha has been proactive even before the project officially launched about getting partners and a plan under its belt. You can see it in our graphic below, which I guess has three more companies than needed now.
I've reached out to PSPC about what next steps they intend to take, and a proper timeline if available. That has yet to be responded to as well. Hopefully in the coming days we have a clearer picture of what is to come.
Both options, to me, are premier and I will complain about neither. I intend to do a large breakdown of CPSP soon. That has been in the works since I heard we are getting news. Sadly companies take a long time to respond to questioning lol.
Hopefully we will also see companies give wider breakdowns as well of their promises. Hanwha has been fairly forthcoming. TKMS keeps very quiet. They dont like to talk. Both have promised maintenance facilities in Canada. Hanwha has gone a step further and promised a dedicated Land Testing facility to handle integration and R&D regarding CPSP. They've also promised tech transfers and access to the IP for the Korean systems inside KSS-III, which for Batch II is the vast majority compared to the heabily European Batch I sensor suite.
They also promised local battery production for the KSS-IIIs Lithium-ion batteries as well as Canadian comoanies access into the wider South Korean supply chain. Hanwha has been very giving to us about what their plans and package will look like.
TKMS, so far has stuck to local maintenance facilities. There is obviously more there, but the Germans are not known for being talkative, and this is one such case.
Anyways, those are discussions for when companies get back to me. For now we have a clear path forward. The Prime Minister is in Kiel today and will be at Hanwha in October. That gives us some sort of timeline.
Until then, you can find their official statement below.
August 26, 2025 - Gatineau, Quebec
Through Canada’s defence policy, Our North, Strong and Free, the Government of Canada is providing members of the Royal Canadian Navy with the equipment they need to keep Canadians safe and maintain current and future operational readiness. Canada has the longest coastline in the world, and it is essential that the Royal Canadian Navy be equipped with superior underwater surveillance capability to protect our country’s security and Arctic sovereignty.
The Royal Canadian Navy requires a new submarine fleet that will be deployable in the Arctic with extended range and endurance that will provide stealth, persistence and lethality as key capabilities. The future Canadian Patrol Submarine will employ a unique combination of these attributes to ensure that Canada can detect, track, deter and, if necessary, defeat adversaries in all 3 of Canada’s oceans. It will enable the Government of Canada to contribute to international security through deployments alongside allies and partners, while creating opportunities to strengthen Canada’s defence and marine sectors.
Today, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, and the Honourable Stephen Fuhr, Secretary of State (Defence Procurement), announced that the Government of Canada has identified German company Thyssen Krupp Marine Systems (TKMS) and Korean company Hanwha Ocean Co., Ltd. (Hanwha) as the 2 qualified suppliers for the Canadian Patrol Submarine Project (CPSP).
This decision was informed by a thorough assessment of Canada’s requirements for the CPSP, including construction and delivery timelines for the new submarine fleet. Canada also engaged with other governments and militaries to exchange lessons learned and to gain insights into their respective submarine acquisitions, infrastructure and sustainment programs.
As the current global environment continues to evolve, the CPSP is an opportunity to diversify Canada’s defence partnerships and collaborate with allies and partners, while creating long-term opportunities for Canada’s marine and defence industries. The identification of qualified suppliers is a critical milestone for the CPSP. It is a positive signal that the Government of Canada is taking the necessary steps to provide members of the Royal Canadian Navy with the equipment they need, and that it is prepared to move quickly and decisively to ensure delivery of the first Canadian Patrol Submarine no later than 2035.
As part of the next steps, Canada will conduct in-depth engagements with the 2 qualified suppliers to continue to advance the procurement process.
The Government of Canada remains committed to engaging Canadian industry and creating high-paying jobs at home through the CPSP. As such, Canada intends to leverage work on the submarines to generate economic benefits for Canada’s marine and defence industry throughout the fleet’s operational life.
Quotes
“Diversifying our trade partnerships is crucial to ensuring Canada meets the moment as global circumstances evolve. The Canadian Patrol Submarine Project, in collaboration with TKMS and Hanwha as the 2 qualified suppliers, is an opportunity to work with allies and strengthen our defence industrial capacity. This is a critical step toward equipping the Royal Canadian Navy with next-generation capabilities our Navy needs to protect our sovereignty and support our allies.”
The Honourable Joël Lightbound
Minister of Government Transformation, Public Works and Procurement
“The Canadian Patrol Submarine Project will safeguard Canada’s sovereignty and strengthen partnerships with our allies by delivering next-generation submarines to the Royal Canadian Navy. The advanced submarines will give our Navy the confidence and capabilities to respond effectively to emerging threats, while creating opportunities for Canadian industry. Identifying TKMS and Hanwha as the qualified suppliers marks an important step toward the procurement of this critical capability.”
The Honourable Stephen Fuhr
Secretary of State (Defence Procurement)
“Today, Canada takes another step toward acquiring next-generation submarines for the Royal Canadian Navy. This is about defending our sovereignty, protecting Canadians, and ensuring our Armed Forces have the tools they need. Through the Canadian Patrol Submarine Project, we are strengthening alliances, diversifying defence partnerships, and creating opportunities for Canadian industry.”
The Honourable David J. McGuinty
Minister of National Defence
“Canada is acquiring Canadian Patrol Submarines to build our sovereign capabilities. In addition to meeting the standard requirements of the Industrial and Technological Benefits Policy, all this work will be done to further Canada’s objective of maximizing economic benefits under the forthcoming Defence Industrial Strategy. This generational project will strengthen our economy, create well-paying jobs and build a more secure, resilient Canada.”
The Honourable Mélanie Joly
Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
Quick facts
The Victoria-class submarines currently in use by the Royal Canadian Navy were purchased used from the Royal Navy (United Kingdom) in 1998. The first 3 Victoria-class submarines were accepted into service in the Royal Canadian Navy between 2000 and 2003. The fourth submarine suffered a fire in transit to Canada in 2004, which delayed its acceptance into Royal Canadian Navy service until 2015.
The Royal Canadian Navy’s current submarine fleet will remain operational into the mid-to-late 2030s. To ensure a smooth transition between classes without a capability gap, the Royal Canadian Navy requires its first new submarine to be delivered by the mid-2030s.
Submarines are a key element of a balanced fleet that enables the Royal Canadian Navy to project power responsively and effectively far from Canada’s shores, with the inherent flexibility and staying power required to succeed across a broad mission set.
The CPSP was established in 2021 to inform timely governmental decision-making about a potential replacement class of submarines and avoid any gap in Canadian submarine capabilities. The intention of the project is to acquire up to 12 submarines for the Royal Canadian Navy.
Public Services and Procurement Canada issued a Request for Information (RFI) for the CPSP that was open from September 2024 to February 2025. The RFI sought input from industry on topics such as capabilities, in-service support, training and infrastructure for the new submarine fleet, and how partnerships with Canadian industry could be leveraged to create economic benefits in Canada throughout the lifecycle of the fleet.
The 25 RFI responses received provided the Government of Canada with valuable insights into the best approach to achieve delivery of the CPSP with the urgency required.