Canada to select winner of $60 billion submarine bid between Korea and Germany

Canada is preparing to award its Canada Surface Combatant Submarine Program (CPSP), a $60 trillion‑won (about $400 billion) project to replace four aging Victoria‑class submarines with up to 12 new diesel‑electric boats. The competition has narrowed to two contenders: a Korean consortium led by Hanwha Ocean with HD Hyundai, and Germany's ThyssenKrupp Marine Systems (TKMS).

Canada’s defence minister has indicated that a split award is unlikely, citing cost and operational efficiency. The final decision – expected just before the NATO summit on July 7 – will hinge on factors such as delivery schedule, economic impact, and strategic alignment. Korea stresses rapid delivery and vertical launch system (VLS) capability, while Germany highlights NATO interoperability and acoustic stealth. The outcome will shape Canada’s naval posture for decades and influence its security partnerships in the Indo‑Pacific and Atlantic arenas.