Canada strategic efforts to reduce US technological reliance

The Canadian government has initiated efforts to diversify its satellite and defense technologies to reduce strategic and economic dependence on the United States and SpaceX’s Starlink. Prime Minister Mark Carney has cited the need for risk management regarding potential U.S. political shifts and military actions as primary drivers for seeking greater autonomy.

In Ontario, the provincial government previously cancelled a $100 million Starlink contract following trade tensions with the Trump administration. While a confidential settlement was reached with SpaceX, the cancellation has reportedly impacted rural broadband rollouts in the province.

Concerns regarding technological vulnerability have intensified following reports of Starlink connection interruptions during missile strikes in Kyiv. Although Washington denied ordering any cutoff of Starshield access, Canadian officials have used the incident to emphasize the risks of dependency. In response, the government has awarded a military contract to Telesat for secure Arctic satellite communications and is working to develop a domestic military ‘AI stack’. Despite these moves, the Department of National Defence continues to spend significant funds, approximately $68 million, with major U.S. firms and their Canadian subsidiaries.

To further establish sovereign space capabilities, the Department of National Defence has signed a 10-year, C$20 million agreement with NordSpace to secure priority access to the Atlantic Spaceport Complex in Newfoundland and Labrador. Additionally, the government awarded Kepler Communications a C$4.7 million contract to develop laser-based satellite links for faster, more resilient Arctic communications, supporting the Northern Wide-Area Tracking and Continuous Horizon programme. These actions align with Budget 2025, which allocated C$182.6 million over three years toward a sovereign launch programme to ensure independent payload deployment during geopolitical disruptions.