A look at the race to replace Canada’s rapidly aging fleet of submarines

Canada has narrowed its submarine procurement to two finalists including South Korea’s Hanwha and Germany’s TKMS, as it aims to replace its aging fleet by 2035.

The contest to supply Canada with its next fleet of submarines heated up this week, as Ottawa narrowed down the competition to just two suppliers: a Korean company and a German one.

Here’s a look at where the massive procurement project currently stands.

1. Why does Canada need to buy new submarines?

Canada is racing to replace its deteriorating fleet of Victoria-class submarines. The fleet, bought second-hand from the U.K. in 1998, is rapidly aging and are expensive to repair and replace parts.

Prime Minister Mark Carney has repeatedly pointed out that the country currently only has one working submarine.

The fleet will need to be retired in the mid-2030s. Ottawa set a deadline of getting its first new sub by 2035, when the Victorias will likely all have been decommissioned.

That, and other countries may also decide to purchase subs, which could send Canada to the back of the line and delay their arrival.

Former prime minister Justin Trudeau announced the massive sub procurement project at the NATO summit in Washington in 2024 amid intense pressure from allies for Canada to ramp up its defence spending and meet the alliance spending commitment it has never achieved.