On Oct. 30, Prime Minister Mark Carney will visit Hanwha Ocean’s facilities to get an up close look at the submarine the company is offering to Canada. Carney has already toured the German shipyard, the other contender offering Canada a new sub fleet.
The Liberal government will spend tens of billions of dollars — with some estimates of up to $100 billion — on a new fleet of submarines.
Here is a basic primer on why and how your tax dollars will be spent.
What is being bought and what will it cost?
The Canadian government has indicated it wants to acquire up to 12 “conventionally powered, under-ice capable submarines.”
No official cost estimate has been released. Thelowball estimate is around $60 billionfor the project, but some defence analysts say the total price tag could end up at around $100 billion. Equipment purchase estimates put forward by the Department of National Defence are often inaccurate.
For instance, the fleet of new warships to replace the Halifax-class frigates was originally estimated to cost $26 billion. That project is now expected to cost more than $80 billion.
The submarines could potentially become the largest single military purchase in Canadian history.
Why are new submarines needed?
The Royal Canadian Navy’s leadership recommended to then-prime minister Jean Chrétien’s government that it purchase four used submarines from the United Kingdom. Canada took delivery of the boats, known as the Victoria-class, between 2000 and 2004.
Navy officers said they did a thorough examination of the vessels to ensure they met Canadian needs, but problems with the Victoria-class submarines started materializing almost immediately.
High-pressure welds had to be replaced and cracks were found in some of the valves on the four submarines. Steel piping also needed to be replaced as the submarines were put into storage in the United Kingdom with water in their fuel tanks. HMCS Chicoutimi was damaged by a fire in 2004 that killed one officer. TheOttawa Citizen reported in 2024that one of the submarines — HMCS Corner Brook — had not been to sea for at least 10 years.
Critics have questioned the value of the submarines, pointing out that they have cost billions of dollars and have offered little in return.
The navy’s leadership says such boats are essential for the defence of the country and with the Victoria-class too old to continue operating, new subs are needed as soon as possible.
How long will the procurement of new subs take?
Prime Minister Mark Carney wants to move quickly on the purchase of the new fleet and government officials have said the plan is to have a contract in place sometime early next year. But that doesn’t mean the vessels will arrive anytime soon. The boats have to be built, delivered and tested and crews trained before the subs enter service.
Earlier this year, the Royal Canadian Navy estimated the first submarinewouldn’t be fully operational until 2037.
What does the Royal Canadian Navy want in a new submarine?
In September 2024, industry officials were provided with initial details about what is needed in a new sub. The new submarines will have to be capable of operating undetected for a range of 7,000 nautical miles, as well as a minimum of 21 days of continuous dived operations.
The briefings to industry stipulated that the submarines be capable of no less than 60 days of self-sustained operations. On board communication systems must be compatible with the U.S. military, according to the Canadian government.
The submarines will also be required to launch and recover underwater drones.
Carney has noted that the military requirements are important but so are potential economic benefits to Canada.
Can the Royal Canadian Navy provide enough crew for a new sub fleet?
In the past, the navy has had trouble training enough submariners to crew its current fleet of four boats, let alone 12 new vessels.
So the Ottawa Citizen asked DND how the navy plans to make sure there are enough personnel. Here is the answer DND spokesperson Kened Sadiku responded with via email.
“The initial analysis of submarines that have the potential to meet Canadian requirements has indicated a range of crew sizes. Prior to the selection of a submarine and decision on how many will be procured, it is not possible to discern without speculation how many submariners will be needed. The RCN has a plan to recruit, train and retain new submariners,” Sadiku wrote.
“Submarine training is conducted on a continuous basis to meet the demands of new submariners as well as to ensure those currently serving remain current. This requires that the Canadian Submarine Force constantly re-evaluate training requirements to meet the need of current and potential future fleets. We are also working with Defence Research Development Canada to refine our modelling for future personnel needs. New submariners are selected from within the Royal Canadian Navy and to a much lesser extent, the Canadian Armed Forces.”
What submarines are in contention?
Canadian defence officials met with representatives from South Korea, Spain, France, Sweden, Norway and Germany to gather information about submarines.
In September 2024, Public Services and Procurement Canada issued a request for information to industry officials “to gain further information on the availability of submarines that are currently in service or in production, and the industry’s capability and capacity to build and deliver up to 12 submarines to Canada.”
Twenty-five responses were received from Canadian and international companies, including seven from international submarine builders, PSPC spokesperson Jeremy Link told the Ottawa Citizen.
In late August 2025,the Liberal government announcedit had narrowed down its choices to two submarine builders: Germany’s ThyssenKrupp Marine Systems (TKMS) and the South Korean company Hanwha Ocean.
Hanwha is offering Canada the KSS-III submarine and TKMS says it will provide the Type 212CD submarine.
Is it possible subs from both suppliers could be purchased?
In a move that raised some eyebrows in the defence community, navy commander Vice-Admiral Angus Topshee suggested in September that it was possible that Canada would select both the German and South Korean subs.
But that won’t be happening,Prime Minister Mark Carney confirmed Sept. 23. There was “nothing I see that would suggest that we would have a mix fleet in submarines,” the prime minister noted, pointing to the fact that maintaining just one fleet would be easier and more cost effective.
What comes next?
Either submarine can do the job for Canada, Carney has explained. “We’ve moved quickly to those two options,” he noted. “Both of them fulfil the requirements, the very high requirements for the Canadian Navy.”
A technical review is now underway. Carney has said that questions still need to be answered about where the boats will be built and what industrial benefits will Canada receive from the winning bidder.
David Pugliese is an award-winning journalist covering Canadian Forces and military issues in Canada. To support his work, including exclusive content for subscribers only, sign up here: ottawacitizen.com/subscribe
