By Dr. Ann Griffiths, 22 January 2026
Both TKMS and Hanwha Ocean are sweetening the pot to win the contract to build Canada’s new submarines. After a stressful year for Canada, being wooed is a great feeling.
Given uncertainty in economic and security matters, Germany is hoping to strengthen defence cooperation among non-US NATO countries, and this includes Canada and its plan for submarines. TKMS is talking with Norwegian and German companies to come up with a multi-billion-dollar investment package for Canada. In addition to the submarines – which are starting to feel a bit forgotten in all this – the talks cover possible commitments in rare earths, mining, artificial intelligence and automotive battery production.
Hanwha Ocean is also sweetening the pot. In addition to advertisements in a variety of media, Hanwha just announced that it and Babcock Canada, which is involved in support and sustainment for Canada’s current submarine fleet, are pursuing a joint approach to the submarine acquisition project. The team proposes long-term employment, skills transfer and industrial participation in Canada into its bid. The partnership combines Hanwha Ocean’s shipbuilding experience with Babcock’s sustainment capabilities, local footprint and workforce experience.
It will be a tough decision, which I’m glad I don’t have to make. It needs to be made soon. And I fear that once again the decision will be based, not on getting necessary capability for the RCN quickly, but on the employment ashore or investment in Canada. I understand the government’s motives in this, but let’s hope that a decision is also about the capability of the subs and the timeliness of their arrival.
Image: A photo of a KSS-III Batch I on the left and a rendering of the Type 212 CD on the right. Credit: Republic of Korea Navy, ThyssenKrupp Marine Systems
