Aug through Dec stacks up with more trade shows, summits, and B2B days designed for companies ready to step up their sovereign capability development.

Here are the top H2 2026 events, in chronological order:

The Events

• ADSE 2026: Aug. 6-7, Abbotsford, BC. AIAC’s West Coast expo puts government and aerospace leaders in one room for two days of B2B.

• Cyber Digital Outlooks 2026: Oct. 1, Ottawa, ON. CADSI seats you across from DND, SSC, CSE, and ISED to talk cyber & digital priorities.

• DEFSEC Atlantic 2026: Oct. 6-8, Halifax, NS. Canada’s second largest defence show delivers over a thousand private B2B and government meetings. Last year’s show went international.

• Naval Quebec Annual Meeting of the Supply Chain 2026: Oct. 19-20, Quebec City, QC. The shipbuilding supply chain gathers to connect prime contractors with Quebec suppliers.

• Spacebound: Oct. 19-21, Ottawa, ON. Networking opportunities with thought leaders in the space industry and discussions on key topics and industry trends.

• Best Defence Conference 2026: Oct. 20-21, London, ON. Air, land, naval, C4ISR, and public safety leaders build partnerships and supply chains here. Price tag has gone up on this one!

• ABCMI Business Opportunities Conference & Trade Show: Oct. 20-21, Vancouver, BC. The West Coast marine industry’s biggest networking day of the year. With a Seaspan Industry day on the 19th.

• Canadian Aerospace Summit 2026: Oct. 27-28, Ottawa, ON. AIAC’s flagship event stands as the national aerospace gathering of the year. Can they run two events at the same time?

• IPAC Industrial Participation Conference 2026: Oct. 27-28, Ottawa, ON. This event unpacks industrial and technological benefits and shows SMEs how to capture them. Love the timely ITB & Build-Partner-Buy theme.

• Deep Blue Forum 2026: Oct. 27, Ottawa, ON. Vanguard’s underwater domain event covers submarines, the Arctic, and Canada’s coastal defence needs.

• STIQ Buyer / Supplier Day: Oct. 27, Quebec. Quebec suppliers sit down directly with prime contractors here.

• Building Defence 2026: Nov. 9-10, Ottawa, ON. DND and DCC decision-makers and industry stakeholders gather at Canada’s premier defence infrastructure event.

• STIQ Symposium 2026: Nov. 12, Quebec. This symposium walks Quebec SMEs through procurement and export opportunities in defence and security.

• InCyber Forum 2026: Dec. 1-3, Ottawa-Gatineau, ON/QC. Canada’s largest pan-Canadian cybersecurity and AI safety conference lands in the capital region for the first time.

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Here they are by domain:

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SMBs must attend

SMEs are the engine of the Defence Industrial Strategy. Primes can’t meet their industrial and technological benefit targets without a strong lineup of Canadian suppliers.

SMEs also account for roughly 92% of Canada’s defence industrial base and 40% of its jobs. Ottawa aims to award 70% of defence acquisitions to domestic firms by 2035. These venues are prime opportunities to scale and help execute the DIS.

Export-readiness also matters for Canada’s trade diversification push. Ottawa just chose TKMS as its preferred submarine supplier for the CPSP, securing a trilateral production partnership with Norway and Germany. But it’s hard to sell abroad if you haven’t sold at home!

Got any other favourite events? Drop some advice on other events worth attending!

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P.S. No one covers more transatlantic defence events than canadaxeurope.com. More than 1,408 have subscribed on LinkedIn and Substack to gain & share insight!

P.P.S. Our list of events in Europe to follow next week!

P.P.P.S Here’s a take-home version.

Canadian Fall 2026 Defence Sector Events

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July 16, the authority for Canada’s Industrial and Technological Benefits (ITB) Policy officially transferred from Innovation, Science and Economic Development (ISED) to the Defence Investment Agency.

No change of command parades here.

On paper it’s a bureaucratic reshuffle. (Ok, in reality too.)

But in practice, the people who decide how billions in defence contracts translate into Canadian jobs and investment have now moved inside the same building as the people negotiating those contracts.

Quick primer: the Industrial and Technological (ITB Policy) requires companies that win major defence contracts to invest in Canada - jobs, R&D, supply chain work - equal to the contract’s value.

The Defence Investment Agency (DIA), stood up last October, is Canada’s new one-stop-shop for defence procurement. Created to accelerate acquisitions and deliver better outcomes for the Canadian Armed Forces & Canadian Coast Guard.

The New Value Proposition

For years, ITB analysis (market research & industry consultation behind every Value Proposition (e.g. specific benefit package attached to a contract) sat inside ISED.

Separate from the teams actually negotiating procurements at DND and PSPC. The gap meant industrial policy input often arrived after a procurement’s shape was already locked in.

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Folding that analytical capability into the DIA changes sequencing.

The agency explicitly calls for encouraging early decision-making to allow broader Canadian participation in international partnerships, and consider export potential from the outset.

With ITB analysts now inside the DIA, industrial benefit modelling can shape procurement strategy at the design stage, not bolted on at the compliance stage.

There’s a physical dimension too. ISED’s headquarters sits in the C.D. Howe Building at 235 Queen Street - a fixture of Ottawa’s Sparks Street bureaucracy since 1978.

The DIA, by contrast, was stood up as a Special Operating Agency inside Public Services and Procurement Canada, working alongside DND and the Canadian Armed Forces.

There’s a certain irony here. The building ITB is leaving is named for C.D. Howe - Canada’s wartime “minister of everything,” who ran munitions and supply production during WWII and later headed the Department of Defence Production. The man whose entire career was defence industrial mobilization has a building; the function itself just moved out of it.

Moving the ITB team out of ISED’s building and into that structure sends a message: industrial benefits analysis is no longer a standalone economic development function down the hall from unrelated federal programs…

… it’s now embedded with the departments that actually buy defence equipment and engage the industrial base day-to-day.

The Industry Angle

For SMEs (86% of Canada’s defence industrial base) this beats the machinery-of-government story.

One agency now handles both contract negotiation and ITB credit strategy, instead of companies shuttling between departments.

The analytical tools ISED built now sit alongside the DIA’s live procurement pipeline: banking terms, causality guidelines, multiplier frameworks (see the ITB Toolkit). This gives suppliers a straight line on what capabilities the government is prioritizing.

ITB reforms could ease the Policy’s rules on causality and incrementality.

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Housing that policy inside the agency running Canada’s Build-Partner-Buy framework (which prioritizes domestic and allied production over off-the-shelf buys) makes it easier to reward firms embedding themselves in European and allied supply chains, rather than just domestic output alone.

Centralizing ITB analytics inside the DIA bets that industrial policy works better built into procurement design than audited after the fact.

For SMEs positioning for the next wave of contracts, the question isn’t whether this matters — it’s how fast the DIA’s integrated teams start using that leverage.

What This Means for European Firms

For European primes & SMEs already navigating Canada’s ITB/Value Proposition requirements, this consolidation is worth watching closely.

A single agency now controls both the procurement process and the industrial benefit accounting attached to it. This means early engagement with the DIA (not just with DND or PSPC individually) will shape how contract-related investment commitments are structured and credited.

Firms building supply chain partnerships with Canadian SMEs, or exploring joint ventures ahead of a bid, may find the DIA’s centralized structure cuts through the friction of the old multi-department dance.

And it also means there’s now one gatekeeper instead of three, and as we saw with the recent LUV decision, getting in early matters more than ever.

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From 20 - 24 July, the Farnborough International Airshow (FIA) hosts 1,500+ exhibitors from 60+ countries and attract over 100,000 visitors. This year’s event comes at a critical moment. The UK defence sector has faced rotating defence ministers, a PM resignation, and calls for higher defence spending. (External Link)

A world-class aerospace event with a growing defence focus, the FIA is a prime platform for Canadian companies to showcase capabilities, secure investment, and forge lasting cross-border partnerships in the UK.

--Canada’s Delegation--

ISED, DND, the Trade Commissioner Service, and the Aerospace Industries Association of Canada are delivering a coordinated Canadian presence at FIA 2026. This includes the Canada Pavilion Lounge, Canada Chalet, exhibition areas, meeting rooms, and speaker series events.

Canada is showing up: 500+ Canadian participants from over 150 organizations.

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--Defence SME Zone: 2026 Addition--

FIA also puts SMEs front and center in defence. This year’s show debuts the Defence SME Zone to highlight high-potential firms in defence & security tech.

The zone lets SMEs with turnover under £10M ($18.6M CAD) engage directly with primes, media delegates, governments, and investors.

More SME support at these shows is always welcome - flagged in this year’s CANSEC.

--British-Italian-Japanese Global Combat Air Program--

Canada is expected to officially join the British-Italian-Japanese Global Combat Air Program as an observer.

The move that marks a strategic effort to bolster European defence ties while Ottawa assesses its long-term fighter jet alternatives.

The well-timed announcement offers good news momentum heading into Farnborough.

However, it is the latest in a period of extended confusion in Canada’s fighter procurement saga.

--The Takeaway--

Farnborough covers the full spectrum of aerospace and defence. 2026 is set to spotlight global security, advanced tech and AI, resilient supply chains, sustainability, finance, and the next-gen workforce.

For SMEs, it’s a rare chance to see the entire value chain in one place and keep the ball rolling after Canada’s success at Eurosatory (Did you miss out? Check out what else is on the horizon).

Firms should focus on linking with primes, procurement bodies, and vital industry connections to anchor their agenda and maximize their time on the show floor.

Europe’s aerospace sector needs Canadian suppliers. FIA is one of the best opportunities to meet the moment.

P.S. No GSOIA needed to access this newsletter. 1,386 subscribers have unrestricted access.

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This guest post is written by Mike Petric, Managing Director of PerceptX. PerceptX is a Canadian veteran-owned advisory firm focused on defence and aerospace. PerceptX advises governments, corporations, and investors working to build sustainable and competitive Canadian defence industrial capabilities.

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Executive Summary:

In the wake of the decision on CPSP, Canada should do five things now:

• Hold Germany, Norway, and TKMS to clear commitments on delivery, Arctic performance, Canadian industrial participation, IP, sustainment, training, and production integration.

• Keep Korea a warm, serious strategic option (without using them as a stalking horse) if contract negotiations stall, costs move, delivery slips, or industrial commitments weaken.

• Convert the Hanwha industrial campaign into a wider Canada-Korea agenda on fires, munitions, air defence, counter-UAS, autonomy, space-enabled C2, and maritime. Do this as part of broader defence industrial engagement with the region.

• Use the German-Norwegian industrial footprint and growing ambition in the Indo-Pacific, including TKMS’s Singapore experience and maintenance facilities, to support Pacific serviceability and regional industrial access.

• Encourage TKMS to leverage Canadian capabilities already identified through the Hanwha process where they fill gaps in the German-Norwegian offer.

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Introduction

Canada has selected TKMS as the preferred supplier for the Canadian Patrol Submarine Project. Many will treat that as the end of a process. It is not. Canada still needs to negotiate a final contract, lock down delivery, finalize workshare, and make the German-Norwegian production arrangement serve Canadian interests.

Despite the obvious imperative to work with TKMS to deliver a successful submarine program, Canada must also ensure it gets the subsequent engagement with Korea and the broader Indo-pacific right. That’s why Canada should seize this file now and take a proactive rather than reactive posture toward its South Korean partners in the wake of this decision. Why?

If Canada wants to hit its defence revenue and export growth targets, it needs exports to the Indo-Pacific as well as Europe. Defence exports give Canadian firms economies of scale, production depth, and resilience between domestic procurement cycles. A focus on exportable capabilities also builds a competitive, capable and sustainable industrial base that does not depend on Canadian demand alone.

Canada also needs like-minded partners with real industrial capacity if it wants strategic autonomy. Outside Europe and NATO, South Korea, Japan, Singapore, and Australia all matter. South Korea should sit somewhere near the top of that list.

Canada should pursue direct partnerships with these countries’ defence industrial players, but it should also study how these countries have expanded their roles in the global defence industrial base. South Korea has paired domestic production programs, including KF-21, K9, K2, and naval shipbuilding, with aggressive export growth.

Canada and Korea have already built the policy machinery. Prime Minister Carney and President Lee launched negotiations on a Canada-Korea Defence Cooperation Agreement covering defence science, technology, and materiel. They also confirmed the General Security of Information Agreement is in force, identified cybersecurity as a priority, and committed both governments to a joint critical-minerals stockpiling plan by the end of 2026.

The submarine competition also built practical knowledge. Canada and Korea spent months defining what industrial cooperation could look like around a major defence program. Hanwha and Team Korea advanced roughly 75 MOUs with Canadian firms and proposed industrial cooperation across hydrogen, LNG, aerospace, crude oil, naval sustainment, and other sectors.

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Canada should now do five things.

First, keep pressure on Germany and Norway.

Preferred supplier status gives TKMS the lead. It does not give TKMS a blank cheque. Canada should hold Germany and Norway to clear commitments on delivery schedule, Arctic performance, Canadian industrial participation, IP access, sustainment, training, and long-term production integration. To be certain, TKMS is a credible highly technically capable supplier and Germany is an ally. But, submarine programs are complex, political and challenging things. See France’ experience in Australia.

PM Carney announces TKMS as preferred partner. (Source: Reuters)

Second, encourage TKMS to use the Canadian capabilities Hanwha already helped identify.

Canada should not let capable Canadian firms sit outside the program because they attached early to the Korean campaign. If TKMS has gaps in its offering, Canada should push it to integrate Canadian firms that can fill them. The companies engaged by Hanwha have already demonstrated that they’re competitive and have something to offer.

Hanwha announced MOUs, Source: PerceptX Analysis

Third, keep Korea warm as a credible fallback for submarines, but do not use them as a stalking horse.

This requires discipline. Ottawa should communicate clearly that TKMS has the lead, that Canada wants the German-Norwegian path to work, and that Korea remains strategically important if negotiations stall, costs move, delivery slips, or industrial commitments weaken.

Fourth, do not waste industrial goodwill.

The Hanwha campaign created relationships that Canada can use in other capability areas. The strongest fit is fires and munitions. Canada needs long-range precision strike, deep UAS, loitering munitions, indirect fire modernization, and more. Hanwha’s K9, K10, K77, Chunmoo, guided rockets, tactical missiles, and ammunition portfolio align with real Canadian requirements. Canadian industry can contribute sovereign capability in steel, critical minerals, AI-enabled fire control, secure communications, training, simulation, maintenance analytics, and Arctic use cases and domestic integration

Air defence and counter-UAS should come next. Canada needs GBAD, IAMD, layered CUAS detection, electronic warfare, hard-kill and soft-kill effectors, data fusion, and C2 integration. Korea has relevant capacity in radar, air defence, missiles, electronics. Canadian firms can bring sovereign capability in EO/IR, cyber, secure software, AI-enabled C2, space-enabled communications, training and simulation, and lifecycle support.

Canada should also advance work on autonomy, space-enabled C2, and maritime sensing. Canada needs air-launched effects, autonomous collaborative platforms, MUM-T, Arctic underwater awareness, uncrewed maritime systems, and persistent maritime surveillance. Korea brings scale and export markets. Canada brings key sovereign capabilities in AI, specialized autonomous system capabilities, synthetic aperture sonar, batteries, space, sensors, sonar handling, platform management, training, and sustainment.

Canada should be looking at all of these opportunities and potential industrial partnerships through the lenses of several partnership models, and matching each to the industrial opportunity at hand:

Partnership models Canada should contemplate with South Korea partners Source: PerceptX Analysis

Fifth, make the Indo-Pacific part of the TKMS deal.

TKMS and ST Engineering have signed an MOU for a joint Submarine support hub in Singapore (Source: Asian Military Review)

Canada chose a European submarine pathway, but the RCN operates from both coasts. Any future submarine fleet will need to support Arctic, Atlantic, and Pacific missions. Canada should ask Germany, Norway, and TKMS how their regional footprint in the Indo-Pacific might support both Canadian submarines operating from Esquimalt into the Indo-Pacific, and potential market access and collaboration. This is not theoretical; Canada recently deployed a submarine to RIMPAC.

TKMS also already has regional experience through Singapore and the Type 218SG program. Recently TKMS and ST Engineering signed an MOU. During the signing a TKMS executive said the company is creating a “high-performance maintenance and service network in Singapore — for the benefit of the Republic of Singapore Navy, and our international partners.” Canada has just become one of those partners.

Canada should use that footprint to improve serviceability, spares access, technical reach back, crew familiarization, maintenance planning, and regional sustainment options.

Conclusion

Canada chose Europe for submarines. That should strengthen the transatlantic relationship, but it should not narrow Canada’s options to engage partners in the Indo-Pacific.

The world is watching whether Canada has matured as a defence market and industrial partner. How Canada manages Germany, Norway, South Korea, and the wider Indo-Pacific after the CPSP decision will be one of the tests.

P.S. 1,367 of you are shaping transatlantic relations with www.canadaxeurope.com. Thanks for being a part of it!

P.P.S. for more from Mike, check out www.canadaxindopacific.ca

The NATO Ankara Summit takes place this week (Jul. 7-8). PM Carney joins 31 allied leaders as NATO prepares to announce tens of billions in new defence contracts.

Canada used the lead-up to the summit to name ThyssenKrupp Marine Systems (TKMS) as it’s preferred supplier for the CPSP.

Here’s what Canadian SMEs need to know about the announcement.

The Stakes

Canada is shopping for up to 12 new subs, a program valued at $60 - $100B over the 40yr lifecycle.

2 contenders remained: Germany’s ThyssenKrupp Marine Systems (TKMS) with the Type 212CD, already in production for Germany and Norway, and South Korea’s Hanwha Ocean with the KSS-III Batch II, now in service with the Republic of Korea Navy.

Both platforms meet the High-Level Mandatory Requirements set out by the Navy. The real question: which partnership best advances Canada’s industrial ambitions and reduces reliance on Washington?

TKMS’s Compelling Case

TKMS brings 185 yrs of naval shipbuilding and a €20.6B order backlog.

(It’s not alone - European defence primes have accumulated considerable order backlogs). TKMS operates the world’s busiest conventional submarine production line.

The 212CD, co-developed with Norway through a €5.5B program, gives Canada a direct entry into an active production queue.

TKMS CEO Oliver Burkhard made it clear: the winning bid must build an ecosystem rather than just deliver submarines.

He points to energy, mining, AI, steel, and battery production as areas where Canadian and German industry can create real value together.

The recent G7 Summit also showed that Europe is paying attention to Canada in these domains. Canada also signed a Joint Declaration of Intent to cooperate with Germany on critical minerals back in Aug. 2025.

Canada’s participation in the EU’s $244B SAFE program is already in place (with the first Canadian SAFE contract awarded?). A TKMS win would deepen those ties and open European defence markets to Canadian suppliers for the long term.

TKMS also pledged $160B in economic activity, 650K+ jobs, and $86B in GDP growth over the program’s lifespan.

On the government side, their bid promises German investments in critical minerals and LNG extraction in Churchill, MB, plus a carbon capture facility in Alberta.

The Canadian Industry Behind Team 212CD

TKMS has built a strong Canadian industrial coalition for its bid.

A notable partner in its bid is Cohere, which signed a Teaming Agreement to Drive AI-Enabled Innovation for the CPSP. Both firms will evaluate how advanced language and data models can optimize decision-making workflows, manage onboard intelligence, enhance training platforms, and fortify naval interface security.

Here are a few other key partners:

CAE: Training, simulation, and operational readiness systems for CPSP crews.

Seaspan Shipyards: Leads the domestic sustainment enterprise and Maintenance, Repair, and Overhaul capacity on the West Coast.

EllisDon: Designs and constructs the 212CD’s specialized training facilities to Canadian regulatory standards.

Marmen: Manufactures submarine hull sections and complex assemblies, embedding Quebec’s precision manufacturing directly into the production program.

General Dynamics Mission Systems Canada: TKMS’s partner on Project Arctic Sentinel, a sovereign underwater surveillance capability for Canada’s North.

Magellan Aerospace: Leads heavyweight torpedo production and in-service support.

Gastops: Provides submarine automation system sustainment and leads a Canadian Centre of Excellence for lifecycle support and capability evolution.

Destiny Copper: Advances the critical mineral supply chain, converting waste streams into high-purity copper powder for defence and aerospace industries.

Valbruna ASW: Supplies the non-magnetic submarine steel that makes the 212CD nearly invisible to magnetic anomaly detectors. TKMS has already placed a 70-ton pre-contract order and is fast-tracking Valbruna’s German WIWeB certification. This signals TKMS is moving ahead of the competition.

Finkl Steel - Sorel: Strategic materials partner for the CPSP program.

GH Power: Turns recycled and waste metals into hydrogen, thermal energy, and metal oxides. Will assess how low-carbon energy and advanced materials technologies can drive the next wave of industrial and manufacturing growth in Canada.

The firm also spearheaded the Canadian Defence & Dual-Use Innovation Ecosystem: a new, homegrown network which links Canada’s research power to real-world maritime defence and dual-use tech that can compete globally. This is on top of 5 cooperation agreements with Indigenous organizations.

The strategy behind the CDDUIE? Keep a finger on the pulse and co-generate IP.

Beyond the MOUs, Canada’s energy and defence sectors just landed a series of agreements set to boost Canadian defence industry capacity and supply chain integration such as:

LNG:

• Securing Energy For Europe (Germany) and Ksi Lisims LNG (Canada) signed a Heads of Agreement for 1M tonnes of Canadian LNG exports per year.

B2G:

There was also the well timed mega-deal with Lockheed Martin Canada and Germany.

Navigation Systems:

• Kongsberg and OSI Maritime Systems signed an MOU to join forces on navigation solutions. OSI’s navigation tech will plug directly into Kongsberg’s supply chains and the ORCCA Combat System to support CPSP.

Some agreements tie into CPSP more closely than others, but each one matters. We’ll only reach higher defence production capacity if the whole sector moves together.

For a full picture of the 212CD ecosystem, check out this industry map:

Political and Industry Implications

A TKMS contract means Canada aligns with Atlantic partners. Ottawa will secure a trilateral production relationship with Germany and Norway, hone its Arctic technology, strengthen its SAFE participation, and give Canadian industry a direct, long term two-way path into Europe’s growing defence market.

TKMS will also bring Canada into its Submarine Cooperation Network, which means manufacturing and integration work beyond CPSP.

Supply chain integration is one of several obstacles Canadian SMEs in Europe face (you can read more about it in 5 defence industry issues Canada faces in 2026). The 212CD would be a strong gateway into an often confusing and bureaucratic market.

A Hanwha selection would have signaled an Indo-Pacific pivot, a potentially earlier delivery timeline, and a move away from traditional European partners. For SMEs, this means joining a Korean-led supply chain with faster production but less direct access to European markets.

Critical components still need to be hashed out.

A government equity stake, IP co-ownership, or a domestic producer that progressively takes on more of the program. This deal is a prime moment to put Canadian capacity front and center (see Dear Canada, Don’t Buy a Submarine…)

For SMEs, the submarine giant Canada selects will create a production ecosystem that requires local partners and suppliers.

Twelve submarines, one message: Canada is choosing Europe.

P.S. 1,364 of you are shaping transatlantic relations with www.canadaxeurope.com.

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Here’s the arc before the announcement lands.

Because the trajectory says as much about how Canada now thinks about defence procurement - as the choice between Germany & Korea.

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Washington, July 2024: the deflection summit

Trudeau’s submarine pledge was born of pressure, not policy.

Facing criticism over Canada’s chronic underspending, Trudeau and then-Defence Minister Bill Blair (now ambassador to the United Kingdom) announced the sub commitment on the margins of the Washington summit.

It was bundled with a Ukraine aid package and F-16 pilot training as NATO leaders gathered for the Alliance’s 75th.

It had the shape of a government buying time rather than building capability:

· commitment to procurement,

· 2032 deadline for the 2% of GDP target,

· Request for Information (RFI) issued in September seeking up to 12 under-ice capable boats,

· contract award 2028,

· 1st delivery targeted 2035.

No budget. A pledge sized to survive a press cycle.

The Hague, June 2025: the pivot

Carney’s first NATO summit as prime minister is where Canada’s commitment shifted.

He told reporters he had discussed the possible purchase of European-made submarines with allies.

This is the summit where the submarine file stopped being a spending-target prop and started being treated (in Ottawa) as an industrial strategy question.

And the architecture took shape for what would become the Defence Investment Agency and Canada’s Defence Industrial Strategy.

Germany and Korea, 2025-2026: the courtship

What followed The Hague was a remarkably personal procurement process. A decision understood in Ottawa as a 40-yr industrial partnership rather than a hardware purchase.

In Oct 2025, Carney toured the Hanwha Ocean shipyard on Geoje alongside Defence Minister David McGuinty, South Korea’s PM Kim Min-seok, and Hanwha Group Vice-Chair.

The previous Aug, Carney visited ThyssenKrupp Marine Systems’ submarine building facility in Kiel, touring a 212A-class boat under maintenance with TKMS CEO Oliver Burkhardt.

Few Canadian defence procurements have received this degree of head-of-state choreography with both bidders simultaneously.

A signal that Ottawa understood early on that this was no longer a conventional tender.

The competition narrowed to two bidders in Aug 2025.

Industrial linkage to the broader trade file has been explicit throughout.

Ottawa has made clear it wants economic benefits tied to the industries hit hardest by the U.S. tariff war - steel, aluminum, autos, and forestry.

Ankara, July 7-8, 2026: the decision

Carney previously said a decision would come before the end of June.

CTV News now indicate the announcement will be delayed by a few days likely land around Ankara.

The distinction matters for how this gets read in Brussels, Seoul and Berlin.

This is a Canadian industrial decision carried into the Alliance room, not a decision staged for the Alliance.

The frame

Two years, three summits, two prime ministers, one file.

Washington bought political cover under duress.

The Hague bought latitude and reframed the file as industrial strategy rather than spending-target arithmetic.

And the Ankara bidder announcement (whenever exactly it lands) is the moment 2 years of NATO-summit signalling converts into Canada’s first real test: whether it can treat a major defence acquisition as a sovereign industrial decision rather than a procurement exercise.

has framed it precisely: Canada is not buying 12 subs, it is choosing a strategic partner for the next 40 to 50 years…

Whether Ottawa ends up with Germany or Korea, the test from here is whether this newsletter’s argument don’t buy a submarine, buy a submarine company gets reflected in the fine print of whatever contract eventually follows.

A preferred-bidder announcement is not a signed deal.

Expect Ottawa to treat the choice as provisional pending final contract negotiations, preserving leverage to extract binding commitments on delivery, tech transfer, and domestic industrial investment.

That negotiation is the real outcome.

Let’s see if Canada floats or sinks in Ankara next week.

P.S. 1,350 of you are shaping transatlantic relations with www.canadaxeurope.com.

Thanks for being a part of it!

After a week of recovery from Canada’s largest international defence industry presence abroad (Eurosatory), amidst a European heatwave and 80% caught up on emails (sorry if I haven’t gotten to you yet!) there is plenty of to dig into.

This edition:

1) Montreal Conference

2) G7

1) Leading Amidst Uncertainty in Montreal

The International Economic Forum of the Americas just hosted its 32nd edition of the Montreal Conference. (Link) Here’s what matters for Canadian defence SMEs.

From Jun. 8-10, IEFA drew 2,600+ participants & 125 speakers to Montreal around one theme: Leading Amidst Uncertainty.

Day 1 zeroed in on geopolitics, finance, and defence. The next 2 days shifted to energy security, critical minerals, and the digital economy. The message: industrial capacity now plays a central role in transatlantic cooperation, beyond just diplomacy.

Industry Minister Mélanie Joly put Canada’s industrial strategy and integration with Europe front and centre (link).

--Europe’s Presence--

Europe’s footprint in Montreal was significant. The European Commission sent Stéphane Séjourné to vocalize Brussels’ industrial priorities amid global geopolitical shifts. Erkki Keldo, Estonia’s Minister of Economy and Industry, gave valuable insights on digital power and strategic resilience.

France’s Economy Minister Roland Lescure also led a talk on French-Canadian economic security, competitiveness, and innovation.

Canada and the EU now see their defence-industrial bases as a joint opportunity. Both face production gaps, and both know they need each other to bridge them.

Montreal reinforced what NATO and recent agreements (i.e. SAFE) already signal: Canada and Europe will build together, buy together, and align standards.

Here’s where SMEs come in. Canada and Europe can’t integrate supply chains through primes alone. SMEs bring the specialized skills and agility that big industry seeks when it looks down its supply chain.

If you lead an SME in defence or critical minerals, this conference confirmed the trajectory. Canada’s industrial base needs depth.

https://www.laconferencedemontreal.com/#/

2) G7

The G7 Summit (Jun. 15-17) wrapped up last week in Évian, France. For the Canadian defence and advanced manufacturing industry, the summit matters more than the headlines let on.

Before you ask. I double checked. It’s not where the bottled water is drawn from.

Still, a key highlight was that we finally saw SAFE’s first Canadian distillation.

News spread fast after the PM announced the $10M contract Montreal’s Marconi Technologies signed with Enamor International to supply the Polish army with Canadian-made radios.

The deal shows how Canada & Europe are shifting their industrial cooperation from a buyer-seller model towards a more integrated supply chain. The signed contract is a great start.

--Mines & Sensitivities--

Critical minerals were also front and centre.

G7 leaders set a target: cut reliance on any single non-G7 supplier of rare earths and permanent magnets to below 60% by 2030. They announced an IEA-led coordination platform and considered stockpiling, starting with lithium and nickel.

The reason: last year, China’s export curbs on rare earth magnets nearly stalled entire industries, and exposed just how vulnerable Western supply chains are.

No G7 economy can afford to let one supplier control inputs for everything. Canada has the reserves. Now we need to build domestic refining and magnet manufacturing.

The summit produced considerable steps forward.

Here are 4:

• MOU between Sio Silica, RCT Solutions (Germany) and NanoXSolar (United States) to collaborate on Sio Silica’s high-purity silica project in Manitoba;

• MOU between KAP Minerals (Canada) and Hanwa Co. Ltd. (Japan) to develop a critical minerals processing facility in Kapuskasing, Ontario;

• $95M strategic equity investment by Eni (Italy) into Nouveau Monde Graphite’s (Canada) Matawinie Mine in Québec (accounting for 10% of the mine’s planned output).

• 13 new partnerships with 8+ countries through the Critical Minerals Resilience and Production Alliance

PM Announcement on Critical Minerals

Amid the (now resolved?) drama in Iran and energy sensitivities, the G7 also recognized Canada’s potential as a global energy supplier.

As Europe seeks to diversify energy imports, Canada can (and is) position itself as a pristine critical-resource partner in global supply chains.

--AI Linkage--

AI was on the agenda too. Leaders discussed accountability and misinformation, but here’s the link: AI hardware relies on the same critical minerals. Chips need rare earths. Data centres need copper as well as other materials we don’t process enough at home.

Canada is one of the few countries in the world with a domestic AI powerhouse.

If Canada wants to preserve its seat at the AI table, we need to develop our mineral processing base. Sovereign AI and sovereign minerals are the same fight.

Canada sees the link. Conversations at the G7 built on prior agreements & removed blockages in these areas. For the most recent, see the Canada-France GSOIA, or the less mediatized Canada-German one.

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P.S. 1,348 of you are shaping transatlantic relations with www.canadaxeurope.com.

Thanks for being a part of it!

“We are more than allies…we are part of the same family. And in a more dangerous and more divided world, this relationship is more important than ever.”

PM Mark Carney spoke in Paris on June 12, two days before the G7 summit in Évian, less than a year after making France his first international visit.

The key outcome for Canada’s defence industry is signing a General Security of Information Agreement (GSOIA) with France.

This on the eve of Europe’s largest defence conference, Eurosatory, starting Monday in Paris (alongside the G7)

and Canada’s largest ever participation in it.

Negotiated by Public Services and Procurement Canada, in collaboration with Global Affairs Canada and the Department of National Defence, the agreement establishes a secure framework for exchanging classified information.

As Carney put it, it creates “the ability to exchange classified information…our space, defence and aerospace sectors will have better opportunities to bid on contracts, form R&D partnerships, and strengthen commercial ties.”

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Previously, Canadian firms pursuing French defence contracts or joint R&D faced a structural barrier; no mechanism existed to share required classified information. That barrier is now gone.

The sectors covered are worth noting: aerospace and space systems, cybersecurity and secure communications, AI and advanced data systems, maritime and underwater technologies, and dual-use defence platforms. These sit at the core of Canadian industry capability, where concentration is high, and growth is actively pursued.

President Macron described the broader relationship as strategic, noting complementarity between the defence industries and the need to move “from political convergence to concrete, lasting industrial cooperation.”

The France GSOIA is Canada’s seventh such agreement since December 2024, following Ukraine, Poland, Spain, Portugal, and the European Space Agency.

Alongside other agreements - EU-Canada Security and Defence Partnership (June 2025), Canada’s accession to the EU’s SAFE defence procurement instrument (February 2026), the ICE Pact icebreaker industrial partnership with Finland and the US, a tech partnership with Australia on the Arctic Over-the-Horizon Radar system, bilateral defence cooperation MOUs across Europe and the Indo-Pacific, and a Ukraine security cooperation agreement - Canada has concluded more than 20 defence and security agreements since 2024.

Canada is systematically building treaty, industrial security, and cooperation infrastructure to support allied engagement.

The GSOIA also sets the stage for deeper collaboration in areas both leaders identified as strategic priorities: AI, quantum, critical minerals, and energy.

Carney noted that Canada and France are among only four countries globally with large language model capabilities, framing the AI partnership as an opportunity.

For Canadian defence firms tracking European market access, this is a meaningful development. The harder work - identifying opportunities, building industrial relationships, navigating French procurement - remains ahead.

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But now the door is open, and for the first time in a long time, Canada is opening many doors at once.

Over to industry to turn diplomacy into trade.

P.S. 1,305 of you are shaping Canada-Europe relations with www.canadaxeurope.com. Thanks for being a part of it!

In Paris, more than 150 Canadian companies are using Eurosatory as their opportunity to go abroad.

From Jun. 15-19, Eurosatory offers strategic connections, tech intelligence and business development opportunities worth following up on.

Why Attend Eurosatory

Eurosatory gathers 100,000+ visitors and covers over 185,000 sqm. It grants access to the entire value chain: from industry leaders and visionary start-ups to SMEs, OEMs, and prime-contractors.

The primarily land sector event (a smaller naval event, Euronaval, is held in November, and the Farnborough Airshow takes place in July) is attracting alot of interest given the invasion of Ukraine and European rearmament.

Simply put: no event this year offers a comparable density of European decision-makers and procurement officials in one place.

The Exhibit

Key themes this year include multi-domain superiority, remote engagement, land manoeuvre, air mobility, comprehensive security, crisis management, and industrial resilience.

Participants will also experience the redesigned demonstration zone showcasing trench warfare, 3D drone manoeuvres, and CQB displays.

Canada’s setup is in Hall 5A beside several tech clusters (logistics, embedded electronics, simulation, & CBRNe). CADSI organized useful pre-show webinars for attendees including a Market Assessment by Janes.

Timetable

The Canada Pavilion has tailored events for each day of the show:

• Jun. 15^th: Ribbon Cutting Ceremony (1 PM)

• Jun. 16^th: Meeting with Trade Commissioners (10 AM - 11 AM & 1 PM - 2 PM)

• Jun. 17^th: Canada Reception (6 PM - 9 PM)

• Jun. 18^th: Maple Hour (1 PM - 2 PM)

The delegation

The 150+ Canadian delegation at Eurosatory 2026 marks a historic high-water mark for Canada at this biennial event. The participation spans every tier of the defence industrial base:

• 8 Prime contractors, including General Dynamics Mission Systems–Canada, Colt Canada, MDA Space;

• 34 OEMs bringing hardware, systems, and platform solutions;

• 75 SMBs - nearly half the total delegation - representing Canada’s innovation engine;

• 23 government and economic development bodies, from the Department of National Defence to Regional Agencies, as well as city representatives from Gatineau, Invest Ottawa, Edmonton Global, Montreal International;

• 13 associations and academic institutions, including several from ETS, Polytechnique Montréal, and Quantum Valley Ideas Lab.

The sheer volume of participants signals an inflection point: Canada’s defence industry is no longer content to observe the international market. It is showing up to compete in it.

Sector Capabilities

The Canadian delegation covers virtually every domain on the Eurosatory exhibition floor. The table below maps key sectors & companies attending - a snapshot of the depth and range of Canadian capability in attendance.

Three sectors stand out for their density. Software, AI, and simulation companies are the single largest cluster - reflecting Canada’s well-established technology sector pivoting to defence applications. Land mobility and autonomous systems represent traditional strengths being modernized, while cyber and C5ISR companies show the growing sophistication of Canadian dual-use technology.

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The Canadian Directory

Canada’s dedicated directory of Canadian companies attending Eurosatory 2026 is live.

But we put together a clickable view at a glance graphic highlighting the range of attending companies https://canva.link/psnhboxh42aui4i

The Bigger Picture

Canada's Defence Industrial Strategy aims to increase defence exports by 50% and strengthen whole-of-government support for strategic export opportunities. SMEs account for 92% of Canada's defence industrial base and 40% of its employment.

• —Increased defence spending targets and allied capability requirements are creating real export demand for Canadian solutions in land, cyber, and autonomous systems.

• —Federal and provincial investment in defence industrial capacity - reflected in the number of economic development agencies attending- is translating into coordinated market access efforts.

• —With 75+ SMBs represented, Canada’s defence innovation ecosystem has reached international business development heights. Many of these companies are seeking partnerships, licensing agreements, and first international contracts.

• —Canadian strength in AI, software, photonics, and advanced materials - sectors that straddle commercial and defence applications - is finding a receptive market as allies prioritize tech-enabled warfighting capabilities.

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The final word - go get’em Canada

For international partners and procurement agencies at Eurosatory 2026: the Canadian defence industrial base has the depth, the innovation, and the institutional support to be a serious partner and that diversified source of supply.

Hall 5A is the place to seek out the Maple Leaf & find out.

P.S. 1,289 of you are shaping Canada-Europe relations with www.canadaxeurope.com. Thanks for being a part of it!

P.P.S. want to know what it was like before the maple syrup hit the fan in Canada’s defence sector?

Here’s my post from 2024: https://www.linkedin.com/posts/vincemarmion_eurosatory-is-next-week-a-potential-activity-7206252487140421632-fjVT?utm_source=share&utm_medium=member_desktop&rcm=ACoAABLdMZUBpG45fjqpFSH9hmmoP-sN41cLFGU

And a throw-back from 2022!

https://www.linkedin.com/posts/vincemarmion_eurosatory2022-activity-6943585334563635201-Gltr?utm_source=share&utm_medium=member_desktop&rcm=ACoAABLdMZUBpG45fjqpFSH9hmmoP-sN41cLFGU

Canada should be out negotiating more than hardware and global supply-chain integration (or another auto factory).

Canada should buy a seat at the table.

Buy a Submarine Company.

But first, let’s lay out a few of the facts.

Canada is ordering up to 12 conventionally powered submarines in a program worth anywhere from $60-100B over its lifecycle.

Two bidders have been shortlisted: Germany’s ThyssenKrupp Marine Systems (TKMS) - offering the Type 212CD developed jointly with Norway, and South Korea’s Hanwha Ocean, pitching its KSS-III Batch-II.

The Defence Investment Agency (DIA) is running the process and a final decision is expected later this year.

Ottawa already sent both bids back. Unsatisfied with the industrial benefits on offer, the DIA granted both bidders a 20-day extension, ending April 29, to enrich what they’re bringing to Canada beyond the hardware.

The government knows this isn’t just a submarine purchase. It’s a sovereignty play.

So let’s follow that logic to its conclusion.

Source: TKMS 212CD

The Hardware Trap

Canada has been here before. The Victoria-class submarines were acquired second-hand from the UK in the late 90s. They were politically expedient and budget-friendly on paper. In practice: delays, breakdowns, a fatal fire, and persistent capability gaps. Buying someone else’s hardware means buying someone else’s problems, supply chains, and production calendar.

Both TKMS and Hanwha understand this is a political procurement as much as a military one. TKMS is packaging its bid with investments in Canada’s critical minerals, AI, and battery sectors. And pitching Arctic capability as well as cooperation with Germany and Norway.

Hanwha has set up a dedicated Canadian subsidiary, Hanwha Defence Canada, in Ottawa and is promising 22,500 jobs annually and $60B in economic benefits through 2044. Earlier production and cooperation with the Indo-Pacific

Both are offering Canada a piece of the industrial action, but structuring it as a sweetener on top of a hardware sale.

What Owning Capability Actually Looks Like

Countries that make submarines don’t just have submarines. Germany’s TKMS, France’s Naval Group, Sweden’s Saab Kockums. These aren’t just shipyards: they set export terms, they own the IP, and they negotiate from strength.

Canada is preparing to spend tens of billions acquiring submarines designed, built, and ultimately controlled by foreign firms - dependent on those firms for sustainment, upgrades, and capability evolution for the next four decades.

In fact, Canada is probably buying more submarines than either Korea or Germany are ordering for their own use. Canada doesn’t want to get caught in the Canadianization trap - but remaining beholden to foreign firms when you are ordering more units than they can bother ordering from themselves doesn’t sound like value for money.

Source: Show Floor. Cansec 2025. Ottawa. May 28, 2025.

The DIA’s mandate explicitly calls for sovereign capabilities. The Defence Industrial Strategy targets growing Canadian defence industry revenues by 240% over a decade and raising the share of defence acquisitions going to Canadian firms to 70%. These are not modest ambitions.

But you cannot achieve industrial sovereignty by purchasing a foreign product with local content requirements attached. You achieve it by owning a meaningful stake in the enterprise itself.

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Enter the Canada Strong Fund

On April 27, 2026, Prime Minister Carney announced the Canada Strong Fund - Canada’s first national sovereign wealth fund, seeded with $25B over 3 yrs. Explicitly designed to invest in major strategic Canadian industrial projects alongside private capital, and to build long-term national wealth.

A minority equity stake in Hanwha Ocean or TKMS - negotiated as a condition of the CPSP contract award - would be exactly the kind of strategic, returns-generating investment the Canada Strong Fund was designed for.

So would a Canadian co-ownership structure in a domestic submarine sustainment and production entity, seeded by the winning bidder and capitalised through the Fund.

This isn’t speculative. Norway (TKMS’s partner on the Type 212CD) built its defence industrial base through exactly this kind of strategic co-investment over decades. It’s how you go from being a customer to being a stakeholder.

European Precedents

The model has other European precedents. Both Thales and Airbus were built on the principle that strategic industrial capability is too important to leave entirely to private markets.

The French state holds a direct equity stake in Thales (currently 26%), giving Paris enduring influence over a company that produces everything from naval combat systems to satellite communications.

Airbus, meanwhile, was deliberately constructed as a multi-government industrial project: France, Germany, and Spain retain stakes precisely because aerospace and defence capability is understood as a sovereign asset, not just a commercial one. And the UK holds a £1 veto share in BAE (control without ownership).

The logic in both cases was the same: governments that fund the demand (through procurement contracts) should also capture a share of the industrial value created.

Canada is about to become one of the world’s largest submarine customers. The Defence Investment Agency and the Canada Strong Fund together provide exactly the instruments France and Germany used: public capital with a mandate to build long-term industrial capacity.

Norway didn’t just buy submarines from TKMS, it built itself into the programme. The Norwegian state owns 50.004% of Kongsberg D & A, which co-developed the Type 212CD alongside TKMS and a 50% stake in the joint venture kta Naval Systems - the entity responsible for the combat systems on every 212CD submarine built.

That government-to-government agreement, signed in 2017, covered joint development, procurement, operation, and maintenance - not just a purchase order.

The result: Norway is co-owner of the IP, earns revenue on every system delivered (including to the German Navy), and retains sovereign control over the most sensitive technology in its own fleet. Canada is being offered the same submarine.

The question is whether it negotiates like a customer or like Norway. And whether Ottawa is willing to think like Paris, London or Madrid.

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The Ask

The DIA is a new institution built to move faster and think bigger. Its CEO, Doug Guzman, brings a career at RBC: someone who understands deal structures, equity, and long-term capital. This is the moment to use it.

Before Canada signs the Canadian Patrol Submarine Project contract, there should be a serious conversation about whether the deal can include:

• An equity stake in the winning bidder’s Canadian operations, held through the Canada Strong Fund

• A technology transfer and IP co-ownership arrangement giving Canada the sovereign ability to sustain and evolve the fleet independently

• Or a Canadian production entity (majority Canadian-owned) that takes on progressively more of the build, sustainment, and ultimately export work over the life of the program.

Both TKMS and Hanwha have already signalled a willingness to invest heavily in Canadian capacity. The DIA should take that signal and raise.

The Bigger Picture: Don’t just buy a submarine. Buy into the industry that builds them.

Canada is being asked to make a generational decision about its place in the global defence industrial order. The world is fragmenting. Supply chains are being repatriated. AUKUS has already demonstrated that technology transfer and industrial partnership, and not just hardware sales, are the new currency of strategic relationships.

Canada has the procurement leverage, a brand-new sovereign fund, a new defence investment agency, and a government explicitly committed to industrial sovereignty.

It has never had a better moment to stop being a buyer and start being an owner and leave behind an automotive addiction.

Don’t just buy a submarine. Buy into the industry that builds them.

P.S. 1,210 of you are shaping Canada–Europe relations with www.canadaxeurope.com. Thanks for being a part of it!

Last week Canada was selected as the DSRB host country, an important first step in setting up the new institution. The move is projected to create 3500 jobs in defence, finance, and beyond. The bank’s charter, treaties, and first CEO have yet to be released.

What the DSRB is

The DSRB is modelled on the World Bank. Member governments contribute capital and the bank issues bonds on international markets and lends the proceeds to participating countries at rates lower than most could secure independently. The institution is designed to finance defence procurement, industrial expansion, and infrastructure resilience at the scale that commercial markets are not built to supply.

Here’s what’s next

The contest to host the new DSRB is now in the final innings. What started as a 3-way competition between cities in the Eastern time zone has grown to include Canadian defence hubs from coast-to-coast.

Montreal, Ottawa-Gatineau, and Toronto were already in the running, and now Halifax and Vancouver are the latest to enter the arena. With 5 cities now looking to host the DSRB, the bank’s clout has grown from the new North Atlantic Bank you never heard of to the next North Star of Canada’s defence industry.

Both defence and banking are cool again.

For a clickable version: https://canva.link/733yj1pxkftgq5l

From the “Battle of the Laurentians” to full-fledged regionalism

The 3 original bidding cities were all located along Central Canada’s St. Lawrence watershed, keeping the competition along the Quebec - Windsor corridor. Now that Halifax and Vancouver are in the running, challenging the Laurentian Consensus.

Each city’s bid highlights its defence and industrial strengths; however, the 2 coastal cities have underlined an asset that Central Canada can’t claim: industrialized & internationally connected ports.

Halifax is distinguishing itself through its maritime edge: the country’s largest naval base, the NATO DIANA HQ and COVE accelerator, and Canada’s only direct express digital link to Europe - the EXA Express transatlantic subsea fibre cable.

Meanwhile, Vancouver is leveraging its Indo-Pacific connection through Canada’s largest industrial port and its cyber, quantum, and AI tech base. Special focus is being centred on its dual-use innovators, such as Photonic, AbCellera and Sanctuary AI.

The 2 coastal cities’ bids join Montreal, focusing on its aerospace and R&D hub, the National Capital Region and its defence and innovation ecosystem, and Toronto, underlining its financial sector.

With several of the cities’ bids backed by their provincial governments, the contest to host the DSRB has grown from a battle between cities into an inter-Canadian regional competition.

What’s to Gain from the HQ & Impact for Industry

The benefits of hosting the DSRB are an open secret: securing the bank’s HQ will give the chosen city a home-court advantage in securing financing for its domestic defence industry. Nevertheless, the strategic implications will vary between regions.

Toronto is a prime candidate for maximizing the DSRB’s financial firepower. The city is North America’s second-largest financial services hub and home to Canada’s largest banks. The latest news of Canada’s Big Six banks being on board to support the DSRB, combined with a sophisticated financial workforce, makes Ontario’s capital a strong contender.

For Canadian defence primes, this also means faster, cheaper access to project financing (a chronic bottleneck in domestic procurement as the government pays by milestones cash flow challenges).

From a government integration standpoint, Ottawa-Gatineau make a compelling case for the HQ. With hundreds of defence firms already operating in the capital region, placing the DSRB alongside the new Defence Investment Agency would create a strong nexus of procurement, finance, and industrial policy.

Montreal’s aerospace and research base would receive a notable boost from having the DSRB to tap into, especially given the possibility of using the financing for dual-use tech and advanced manufacturing. The region credits itself with the lion’s share of defence contracts.

From a geopolitical perspective, Vancouver offers a unique option given its proximity to Indo-Pacific partners. Beyond that, its industry’s specializations in cybersecurity, AI, and marine tech provide niche financing opportunities.

Halifax represents a potential dark horse. Its extensive naval infrastructure and location on the Atlantic, facing the other DSRB participating states, underscore its relevance to maritime security financing.

The political temptation is real

Canada has a long history of distributing federal institutions across cities to manage regional politics - the mint in Ottawa and Winnipeg, the CBC spread across the country and federal departments parcelled. With five cities actively lobbying, the Prime Minister will face pressure to spread the spoils.

The practical case against splitting

The Ottawa-Gatineau camp made this point directly: multilateral financial institutions are purposely located close to the clients they serve: the World Bank and IMF were both established in Washington, not New York.

Regardless of who wins, Canada’s hosting of the DSRB is a boost to transatlantic relations.

In the meantime, may the best city (and region) win.

P.S. After a short hiatus, we’re back at it.

What a week in Canada’s defence posture.

Let’s get started.

The Arctic

With this new plan, Canada is taking full responsibility for defending its Arctic sovereignty.

To defend Canada’s Arctic and North, deter new threats, and support NATO Allies and NORAD continental defence, Canada is:

• Investing $32B at Forward Operating Locations in Yellowknife, Inuvik, and Iqaluit, and at Deployed Operating Base 5 Wing Goose Bay.

  • Includes infrastructure upgrades such as airfield upgrades; new or repurposed hangars; ammunition and fuel facilities; and buildings and equipment for accommodations, warehousing, IT.

• Announcing two new Northern Operational Support Hubs (NOSHs) at Whitehorse and Resolute, and two new Northern Operational Support Nodes (NOSNs) at Cambridge Bay and Rankin Inlet, backed by an investment of $2.67B.

  • This network will enable the Canadian Armed Forces to deploy rapidly and support year-round response across the Arctic and North.

• Investing $294M in Arctic airports, including building a runway overlay and modernising Rankin Inlet Airport and upgrading Inuvik Airport.

  • This will ensure larger aircraft can land, connecting Northern communities to the rest of the country year-round to enable faster, more convenient, and lower-cost travel.

• Other investments include the Taltson Hydro Expansion Project, The Grays Bay Road and Port and the Arctic Economic and Security Corridor, The Mackenzie Valley Highway - bringing the total to $40-50B when non-defence investments are included.

Canada is no longer treating the Arctic as a seasonal sovereignty exercise but a permanent operational theatre requiring industrial depth and allied integration.

Arctic investment is becoming the bridge between sovereignty, industrial opportunity, and rewarding those who can operate, build, and scale in the High North.

Nordic 5

Canadian Prime Minister Mark Carney then shuffled off to Norway for a series of Arctic and Defence related meetings.

In a more dangerous, divided, and uncertain world, security can no longer be taken for granted. Canada is strengthening its defences in the North and working closely with trusted partners to protect our sovereignty and reinforce collective security.

In Bardufoss, Chancellor Friedrich Merz (Germany), Prime Minister Støre (Norway) were joined by Canadian Prime Minister Mark Carney in visiting NATO exercise Cold Response, emphasizing that security in the Arctic is crucial to the security of all allies:

“We are facing the most serious security situation since World War II. It is more important than ever that we work closely with our allies on our shared security. That is why it is good to be here in Bardufoss with the German Chancellor and the Canadian Prime Minister to see how soldiers from NATO countries are training to defend Norway and the Nordic region,” - Prime Minister Jonas Gahr Støre.

Next up Canada and Norway announced an agreement on Space cooperation in defence and security.

The Letter of Intent deepens cooperation in the space domain. As Arctic nations and Allies in NATO, Canada and Norway share a strong commitment to protecting the North and advancing collective security. By strengthening cooperation on space capabilities and innovation, they are ensuring our forces remain ready, resilient, and prepared for the challenges ahead.

Then came a meeting with the Nordic 5 plus Canada. As Tore O. Sandvik, Norway’s Minister of Defense reminds us:

Together, Canada and the Nordic countries represent a ~$4T economic footprint - on par with the world’s largest advanced economies (Germany, Japan) - underscoring the strategic weight of closer transatlantic cooperation.

Where does this leave the new Arctic Industrial Base?

Canada’s latest Arctic posture is no longer evolving in isolation - but converging with the broader Northern European security architecture and increasingly defined by the Nordic 5: Denmark, Finland, Iceland, Norway, and Sweden.

The once loose regional grouping has, post-Ukraine, become a tightly aligned bloc at the core of NATO’s northern flank - bringing together Arctic geography, advanced defence industries, and operational experience in extreme environments.

No single country (Canada included, 70% ambitions aside) can independently build the full spectrum of Arctic-ready systems. The Nordics offer proven platforms, tested doctrine, and mature supply chains that Canada can integrate into through procurement and ITB frameworks.

In a nod to Canadian Patrol Submarine Project (CPSP), Canada’s billion-dollar submarine program, the visits receive plaudits on defence alliance-building and hopes for boats and alliances.

Canada’s renewed Arctic focus anchored in NORAD modernization, expanded surveillance, and all-domain presence is mirrored by Nordic investments in resilience, mobility, and deterrence in the High North. We might be in the early stages of a transatlantic Arctic system.

While numerous other European firms could benefit from increased cooperation across the Arctic Nammo AS, KONGSBERG, Space Norway, Andoya Space, Helsing, HENSOLDT, Isar Aerospace, Rheinmetall, OHB SE, BAE Hagglunds

Canada cited an example of growing defence industrial collaboration between Canada and Norway is a recent $9.6M contract awarded to the joint venture Kongsberg Vanguard LP - a partnership between Norwegian firms Kongsberg Defence & Aerospace and Salt Ship Design, as well as Ottawa-based Adaptive Marine Solutions. The joint venture will design the Canadian Coast Guard’s future mid-shore multi-mission vessels.

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The High North Pivot

Canada’s Arctic strategy is no longer only about asserting sovereignty at the northern edge but positioning within a shared Northern security and industrial ecosystem.

The High North is not just where Canada meets its geography; it is where it meets its allies, its competitors, and increasingly, its economic opportunity.

PS. 1,136 are shaping Canada–Europe relations with www.canadaxeurope.com. Thanks for being a part of it!

The EDF event mixes briefing calls for proposals and new developments with international networking opportunities to form defence R&D consortia and develop project proposals through thematic pitch sessions.

Brussels European Defense Exhibition and Conference (BEDEX) takes place in the back half of the week - at 200 exhibitors it’s small fry, but a 2x1 for the commercial-minded and uber-motivated.

Back to EDF Info Days. As a Canadian, Europe’s consortia approach is mind boggling.

Imagine being one of the 52 members of the Armoured Infantry Ground Assault (AURIGA) project designing Europe’s next drone-resistant armoured infantry fighting vehicle and the jolly design reviews it must generate.

As well as the funny headlines when the leading player in Europe is left out.

Still, Canadians should still follow the space closely.

EDF funding is primarily reserved for EU entities but Canadian companies can still find ways to participate. For firms already operating in Europe or partnering with EU primes, the ecosystem increasingly represents another pathway to integrate into European defence supply chains and collaborative innovation programmes.

Outside of Brussels there are plenty of goings on around the Atlantic to cover, so let’s get started.

Between three oceans

Finland’s Minister of Employment Matias Marttinen visited Canada to strengthen cooperation within marine industry and skilled labour. Including representatives of ALMACO Group, a Finnish company that delivers turnkey accommodation and catering solutions for ships. Their new headquarters in Quebec supports major work with Davie Shipbuilding, including the Canadian Coast Guard/Garde côtière canadienne’s Polar Max icebreaker. Canadian mining companies are major investors in Finland, and Finnish companies such as Normet Group and Metso are already operating in Canada.

Minister Joly, Minister McGuinty and Secretary of State Fuhr announce over $900M to boost defence innovation in the National Research Council of Canada (NRC). The announcement would:

• Support Canadian businesses developing dual-use technology through Defence Industry Assist (DI Assist), a new stream under the NRC‘s Industrial Research Assistance Program

• Accelerate research and development in biomedical countermeasures

• Reinforce Canada‘s edge in quantum technologies for defence application

Special PDAC-edition

The Prospectors & Developers Association of Canada Convention (PDAC) took place last week in Toronto, bringing together tens of thousands of participants from across the global mining and minerals sector. Widely considered the world’s largest mining convention, PDAC serves as a key meeting point for mining companies, investors, governments, and supply-chain partners focused on exploration, critical minerals, and project development.

PDAC drew the largest attendance numbers in its history at 32,155. Canada’s Minister of Energy and Natural Resources Tim Hodgson launched the $1.5B First and Last Mile Fund and previewed a $2B Critical Minerals Sovereign Fund, and announced 30 new partnerships under the Critical Minerals Production Alliance, unlocking $12.1B in project capital with 12 allied partners. This brings the alliance’s total mobilized capital to $18.5B since its launch.

This year’s discussions reflected growing geopolitical interest in securing reliable supplies of critical minerals-including graphite, lithium, and rare earth elements-driven by the energy transition, defence needs, and industrial policy in North America and Europe. For Canadian companies, the convention also highlighted opportunities to position themselves as trusted suppliers within emerging transatlantic supply chains, particularly as allies look to diversify away from higher-risk jurisdictions.

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Several European delegations attended PDAC to deepen partnerships with Canadian mining companies, particularly in the context of the EU Critical Raw Materials Act, which seeks to diversify Europe’s access to strategic minerals. Officials and industry representatives from countries including Germany, France, Finland, Sweden, and Norway were present, engaging Canadian provinces and companies on long-term supply agreements for minerals such as graphite, nickel, lithium, and rare earth elements.

Spain apparently stuns the world with its inaugural pavilion at the globe’s premier exhibition, with numerous engineering firms in attendance (IDOM, SEMA, CRS Ingeniería, Gaia Exploración) and a host of resource-focused companies: LainTech, HALOTECH, MeteoSim, Emerita Resources España, Pan Global Resources Inc. ,SRK Consulting, PRIMIGEA

One of the most concrete outcomes at PDAC was a Germany - Quebec critical-minerals declaration (following Canada’s two weeks prior) and four corporate agreements aimed at strengthening supply chains for materials used in electric vehicles, renewable energy, and defence applications.

• Rock Tech Lithium and Siemens Canada signed ​a memorandum of ​understanding.

• Scandium ⁠Canada and Granges Powder Metallurgy agreed on a technology collaboration.

• Metalshub and Northern Graphite established a partnership on raw materials trading.

• Destiny Copper and thyssenkrupp Marine Systems linked Canadian mineral supply with European naval and defence manufacturing ecosystems.

According to Christian Wagner from Germany’s Consulate General in Montréal, sovereignty and industrial survival depend on diversified supply chains and these deals were proof of it.

Germany participated at PDAC with an unprecedented business delegation representing everything from engineering to recycling, headed by Stefan Rouenhoff, Parliamentary State Secretary (Federal Ministry for Economic Affairs and Energy), highlighting action-oriented collaboration on critical minerals and resilient supply chains.

Staying in German-Canadian relations, here’s a quick update on the Canadian Patrol Submarine Project (CPSP).

TKMS and CPSP

TKMS and CAE have signed a teaming agreement to support the Canadian Patrol Submarine Project (CPSP). This partnership brings together Germany’s TKMS submarine expertise and Canada’s CAE world-class training & simulation capabilities to help build and sustain Canada’s next-generation submarine force.

The collaboration underscores growing industrial cooperation and a commitment to Canada’s sovereign maritime defence and skills development.

TKMS signed cooperation agreements with leading Indigenous organizations from across Canada, establishing a Pan-Canadian framework to advance Indigenous participation in support of Canada’s future submarine capability under the CPSP.

The Indigenous partners of the first agreement are Songhees Development Corporation, Des Nedhe Group Defence, and Glooscap Ventures. A second agreement was signed with the Inuit Development Corporation Association to advance Arctic-based Nation Building initiatives.

The Montreal Council on Foreign Relations (CORIM) organized a private executive meeting, in collaboration with Desjardins, welcoming the Honourable John Hannaford, the Prime Minister of Canada’s Personal Representative to the European Union, as well as Joost Korte, the European Union’s Special Envoy to Canada. The discussions provided a clearer understanding of the prospects for transatlantic cooperation, the potential for Canada’s participation in the SAFE program, as well as other concrete opportunities to strengthen economic, political, and strategic ties between our jurisdictions.

On the agenda the week prior, CEO Éric Martel pitched Bombardier’s role in international commerce and the impact of national champions in this new complex geopolitical world. And Secretary of State Stephen Fuhr spoke at a breakfast event hosted by the Montreal Council on Foreign Relations (CORIM) sharing his insights and vision for Canada‘s Defence Industrial Strategy.

In-between continents

Julie Crôteau touted an exciting and intense month for relations between Canada and Greenland in her role as Acting Head of Consulate - Nuuk, Greenland.

Feb 6: Official opening of the new Canadian consulate in Greenland and a visit to Nuuk by the Governor General of Canada, Mary Simon, and the Minister of Foreign Affairs, Anita Anand, as well as approximately 70 Inuit from Canada, including the President of the ITK, Natan Obed, the President of Makivvik, Pita Aatami, and the President of the Inuvialuit Government, Johannes Lampe. At the same time, there was the visit of the Canadian Coast Guard vessel Jean Goodwill, which conducted exercises with a Danish patrol boat, and a large contingent of Canadian journalists.

Feb 14: Signing of the Canada-Denmark-Greenland Memorandum of Understanding on defence cooperation, on the sidelines of the Munich Security Conference.

Mar 2-4: Several developments at the PDAC conference in Toronto, including:

- The signing of the Canada-Greenland Joint Declaration of Intent on cooperation in critical minerals and energy

- Canada announced $7M in funding for Greenland Resources

- Approximately 100 delegates from Greenland participated in this year’s PDAC, the largest delegation ever sent by Greenland.

On the continent

Mount-Pearl’s Kraken Robotics (TSX-V: PNG) announced that it has entered into an agreement to acquire Covelya Group, a leading international provider of mission-critical underwater technology solutions. Covelya is headquartered in the United Kingdom with nearly 750 employees, operating 12 facilities across North America, South America, Europe and Asia Pacific.

Your next bound:

• Considering expanding to Europe but unsure where to start? Join a focused 60-minute webinar hosted by the Trade Commissioner Service (TCS) in the Netherlands, in collaboration with the Holland International Distribution Council (HIDC). This session will provide practical guidance to help Canadian SMEs successfully enter and grow in Europe.

• EU-Canada CETA SME Roundtable webinar 26 Mar - bringing together different perspectives and areas of expertise needed when trading with Canada.

  Canadian defence events:

  • CDA’s annual Ottawa took place last 5-6 Mar, 2026, you can rewatch The Road to 5%.

  • Registration ends soon for CADSI’s CAF Outlooks 7-9 April in Ottawa. This event is a must-attend if you’re looking to get involved in Canada’s defence sector.

  

  • Registration opens soon for CANSEC - May 27-28, Ottawa.

  • Check out the full list of Canadian defence events here: H1 2026 Canadian Defence Events - CanadaxEurope, there are 10 more before the summer break!

  European defence events:

  • The European Defence Fund Info Days take place 10-11 Mar in Brussels.

  • Brussels European Defense Exhibition and Conference (BEDEX) takes place in the back half of this week, also in Brussels.

  • London’s SpaceComm conference takes place 4-5 Mar.

  • ITEC 2026, Europe’s largest defence training technology exhibition and technical conference Mar 25-27.

  • Undersea defence technology (UDT) takes place Apr 14-16 in London (United Kingdom).

  • Hannover Messe takes place 20-24 April. The World’s Leading Trade Fair for the Manufacturing Industry is increasingly embracing the defence sector.

  • Europe’s largest land domain conference, Eurosatory, is planned in Paris, 15-19 June.

  • The largest airshow takes place in England, Farnborough International Airshow | Farnborough International Airshow 20-24 July, 2026.

  • DALO Days - our favourite European tradeshow - takes place 19-20 August in Denmark. The website isn’t up yet.

  • Canada is the lead nation at Poland’s MSPO - 34th International Defence Industry Exhibition MSPO ‹ Targi Kielce S.A. 8-11 Sept 2026. MSPO is Canada’s second largest defence presence internationally and a gateway to Ukraine.

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PS. 1,127 have now joined www.canadaxeurope.com, committing to improving trans-Atlantic relations.

If you’re not at CDA’s Ottawa Conference today, you’re missing out on The Road to 5% - an aptly named title.

“In June 2025, the federal government announced its intention to raise defence spending to 5% of GDP by 2035. This historic commitment will expand the size, structure, and readiness of the Canadian Armed Forces, strengthening Canada’s capabilities across all domains. Yet the path to 5% is about more than increasing military capacity—it requires careful choices to safeguard Canada’s sovereignty, security, and prosperity.”

At CDA’s Ottawa Conference, the stuffy, venerable halls will be filled with uniforms and defence & tech companies. Something that should happen more often.

The Fairmont Château Laurier is the type of place where tea and champagne meet carpentry and asbestos in a uniquely Canadian way.

It remains a high-brow event. Generals and ex-generals. Deputy Ministers and ex DMs. Professors, parliamentarians and research staff. Lobbyists aplenty. A crowded annex for exhibitors.

- The Conference of Defence Associations Institute serves as an umbrella group for 40 associations & 400K active and ret’d members of the Canadian Armed Forces.

- The agenda is packed with dense topics – readiness, mobilisation, joint forces integration and the occasional fireside chat.

Missing from the event agenda? Europe.

Despite the region’s importance (SAFE, Defence Cooperation Agreements) and the need for trade diversification, it’s not on the agenda. However, the future of NATO is, and like yin and yang, it’s hard to separate the two.

If you missed out, for SMBs, would I recommend keeping it on your agenda? Maybe. Knowing who your target audience is and where you are in the value chain is important.

There are more than a dozen defence events in Canada this winter & spring alone. One in every province (increasingly, every city).

But no other event brings together senior decision-makers from government, defence and the tech industry the same way.

So you’re missing out, but you can catch the intellectual themes from the sidelines on CPAC: https://www.cpac.ca/en

As always, feel free to reach out with corrections!

Let’s get into it.

Canada, Ukraine, & SMEs

Canada has been at the forefront of supplying Ukraine’s defence efforts since the war began. According to the Kiel Institute’s data tracking, Canada is a top-5 donor to Ukraine and ranks #3 in total financial allocations (and #1 as a % of GDP). Within the numbers, the contributions to Canada’s material aid by SMEs shouldn’t be understated.

To date, Canadian defence SMEs have stepped up covering a diverse range of goods and services to support Ukraine. Categorized by subsector, these companies are:

Small arms, ammunition, and weapons systems:

• Colt Canada: Small arms & ammo

• Prairie Gun Works: Sniper weapons systems

• Magellan (with DRDC): CRV7 rocket motors + CRV7 warheads

• Rheinmetall Canada: Nanuk Remote Weapons Systems

These firms account for a considerate quantity of direct equipment donations sent to Ukraine. The total value of their contributions is estimated at around $264.8M, which includes the $146.3M value of goods from Colt and the market estimate of between $58M-$116M from Rheinmetall.

Vehicles systems:

• Roshel: Armoured vehicles (Senator series)

• GDLS: Armored Combat Support Vehicles

• Zodiac Hurricane Technologies: Multi-engine rigid hull Inflatable boats

Additional vehicle donations were delivered through these companies with total goods sent to date valued at just over $1 billion. This figure includes the $895M worth of goods sent by GDLS.

Communications and sensors:

• Twenty20 Insight Inc.: Morskito thermal imager units (Safran)

• L3Harris Wescam: High-resolution drone cameras (EO/IR), incl. MX-15 and MX-20 systems

• Teledyne FLIR: SkyRanger R70 unmanned aerial systems

• Telesat: Satellite communications services (joint project with DND and CAF)

• Other Canadian Industry: PPE / winter gear / Anti-jammer kits / Uniforms

Put together, the value of these firms’ contributions to date is estimated at around $568.8M of direct equipment donations.

Winter gear/clothing:

• L.P. Royer Inc.

• Kamik Canada Inc.

• Stanfield’s Ltd.

• Canadian Tire

• Mark’s Work Wearhouse

• True North Style

• Calco Canada Inc.

• Superior Glove Works Ltd.

• Quartz Nature Inc.

• Modes Moose Inc.

• Woolly Mammoth Outwear Inc.

• Dristex

In total, these companies have donated around 400,000 units, worth around $15M.

Instructors and simulators:

• Top Aces Inc.: Civilian instructors, planes, and support staff for F-16 training

• CAE: Flight simulators for F-16 training

The total known value of these contributions lies at around $15M.

*Note – This information was sourced from Canadian government data. Public attribution is also incomplete; many contributions are aggregated under allied platforms or classified.

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Keeping Pace

As the table demonstrates, Canadian firms play a significant role in supplying Ukraine, and Canada’s defence base is very SME-heavy. Many Canadian firms operate as tier-2 and tier-3 suppliers, supplying materials and manufacturing components, and aren’t captured in this product-level table.

Like many of our allies, Canada’s limited surge manufacturing capacity has been exposed by the war in Ukraine. In some cases, domestic industry hasn’t been able to keep pace with heavy new demand.

The Canadian government shouldn’t be discounted in this either. Long contracting timelines, a fragmented alignment on export controls, a fragmented departmental system that lacks the business intelligence to contribute, limited advance purchase commitments, a strange approach to sole-source contracts, an over-reliance on multilateral decision-making structures (such as Prioritized Ukraine Requirements List), and an industrial policy out of sync with the war’s tempo have all limited Canada’s ability to deliver materiel.

Canada’s inability to deliver equipment is also reflected in the Kiel numbers. Despite its status as a G7 nation and the ninth-largest economy in the world (sixth in NATO), Canada is surpassed by smaller nations such as Denmark and Sweden in per capita military hardware allocations. At the same time, Finland and Norway trail closely behind.

While Canada is undoubtedly a trusted NATO industrial (and political) partner, we still need to expand our partnerships with European industry to scale. Allies talk about the Danish model for a reason.

Canadian SMEs also need to lean in to opportunities to diversify into Europe: co-production with EU firms to scale, MRO sustainment and training hubs, and deeper integration into Ukraine’s reconstruction supply chains.

Canada-Ukraine FTA & SMEs

The 2023 Modernized Canada-Ukraine FTA laid strong foundations for increased SME activity in supplying Ukraine’s defence. While Defence is typically excluded from FTA, Defence firms should still note the provisions of the deal on industrial cooperation, services, digital trade, and government procurement.

Through the agreement, SMEs can expect to increase their access to knowledge sharing on best practices related to access to capital and credit, networks, digital capacity-building programs, and information on SME-related cybersecurity programs.

The FTA also includes provisions to facilitate SME participation in government procurement and aims to include subcontracting with SMEs when considering the structure, size, and design of procurements.

The big takeaway: the war in Ukraine unveiled Canada’s NATO credibility, the untapped potential of Europe’s scale, and the necessity of transatlantic industrial integration. It also opened Europe’s defence market to more allied non-EU players. Our firms are trusted exporters, and Canada is now a SAFE country. The defence sector should continue to push for more.

Pictured - Canadian Prime Minister Mark Carney and Ukrainian President Volodymyr Zelenskyy meeting in August on Ukraine’s Independence Day.

So let’s end with this. The scale of aid to Ukraine is surprising and surpasses expectations. However, in typically Canadian fashion, it lacks ambition to put Canadian technology and industry at the forefront. Allies talk of the Danish model, not the Canadian one. From an industry perspective, more can be done.

P.S. Here’s Prime Minister Mark Carney’s note on the 4 year anniversary, based on an excerpt from his Aug 2024 speech:

Mr. President, dear friends, my message today is simple: Canada will always stand in solidarity with Ukraine.

Canada will be always with you so your many sacrifices lead to the peace, security, and prosperity that all Ukrainians – that all peoples – deserve.

Canada is under no illusions about the importance of your struggle.

And you should have no doubts about the commitments of Canadians to your cause.

Because your cause – freedom, democracy, sovereignty – is our cause.

A backlog is the total value of confirmed orders a company has received but has not yet delivered or recognized as revenue.

Europe’s top 10 defence firms have seen exponential increases in order backlogs over the past year.

Sorted by Defense News Top 100 2025 list - here’s the top 10 European defence firms & order backlogs:

• BAE Systems (UK): £83.6B

• Thales (France): €16.8B

• Leonardo (Italy): €47.3B

• Airbus (Netherlands/France): €46.8B

• Rheinmetall AG (Germany): €55B

• Rolls-Royce (UK): £18.8B

• Saab AB (Sweden): SEK 275B

• MBDA (France): €37B

• Safran (France): does not provide backlog data

• Naval Group (France): €14.4B

• TKMS (Germany): €18.7B (not on the DN list but included given current Canadian interests)

The backlogs signal continuous demand growth in the defence sector.

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What’s driving the backlog surge?

1. Multi-year procurement cycles replacing ad-hoc replenishment

2. Industrial policy shifts (Buy European momentum)

3. Ammunition & air defence restocking

4. Capacity expansion financing at the EU level

The key point: backlog growth is a signal that Europe is moving from peace dividend industrial logic to persistent readiness.

Why this matters for Canada

For Canadian firms, the opportunity is huge:

• European primes are supply-chain hungry
• Industrial capacity (not price) is becoming the constraint

If Europe sustains 2%+ spending across major economies, backlog compression will take years, reshaping transatlantic defence trade. Primes and tiers are actively looking for secondary, tertiary, and alternative sources of supply.

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P.S. Feel free to reach out with any corrections on year-end figures - year-end season made this a moving target!

Plenty to catch up on amidst Enforcetec Tac 2026 in Germany, SICUR in Madrid, and Shiptech forum yesterday in Ottawa.

Let’s get started.

Between three oceans

The Alliance of Canadian Defence Companies (ACDC) launched to rebuild Canada’s sovereign defence-industrial base. They champion Canadian-controlled defence companies that design, build, sustain, and export next-generation defence platforms - reducing reliance on foreign primes and restoring national ownership of critical systems. Membership is restricted to Canadian controlled companies.

American shipbuilder, Davie Defense, has been awarded a contract from the United States Coast Guard (USCG) to build five Arctic Security Cutters (ASCs), a new class of polar icebreaker critical to increasing U.S. presence in the Arctic.

Davie Defense is the U.S. arm of INOCEA (a UK-owned maritime group with operations in Finland, Canada and the U.S). In 2025, INOCEA acquired Gulf Copper & Manufacturing‘s shipbuilding assets in Galveston and Port Arthur.

Davie also shared updates on the close industrial cooperation between Helsinki Shipyard and Davie and its Polar Max project, combining Arctic shipbuilding expertise from both sides of the Atlantic. They also released more details on the first Canadian-made steel for the Polar Max rolled at Algoma Steel, marking an important milestone and Canadian supply chain.

Airbus Helicopters received approval from Transport Canada Civil Aviation (TCCA) authority for the operation of the H175 helicopter in Canada, positioning the aircraft for entry into the Canadian market.

Canada’s INCYBER Forum is moving from Montreal to Ottawa-Gatineau in 2026, selecting the National Capital Region as the host for its 2026 conference. The premier pan-Canadian and international event on cybersecurity will take place Dec 1-3, 2026.

Montréal’s other big tech event, ALL IN, announced that Germany will be the Country of Honour for its 2026 edition, taking place on Sep 16 - 17.

Speaking of Germany, here’s a quick submarine update.

TKMS and Magellan, a global, integrated aerospace company, have signed a Teaming Agreement aimed at strengthening industrial cooperation in support of Canada’s future submarine capabilities. The parties will jointly explore, develop and implement cooperation related to heavyweight torpedo production and the subsequent in-service support phase for the Canadian Patrol Submarine Project (CPSP).

The collaboration opens the door to additional export-focused initiatives, reinforces shared commitment to strengthening Canada’s sovereign defence capabilities and creating high-value skilled jobs.

Magellan is one of Canada’s largest publicly listed (MAL.TO) aerospace companies with significant munitions manufacturing capability, and part of Canada’s Munitions Supply Program.

Dalhousie University and TKMS also signed a memorandum of understanding to explore strategic collaboration related to the Canadian Patrol Submarine Project. Dalhousie signs MOU to join innovation ecosystem focused on Canadian and Arctic sovereignty.

Most recently, UBC partnered with TKMS on dual-use innovation ecosystem, signing an MOU focused on accelerating impactful maritime and arctic research within the Faculty of Applied Science.

The German firm is one of two qualified suppliers selected by the Government of Canada to bid on the procurement program, which will construct a new submarine fleet deployable in the Arctic. The announcements round out their bid team.

Defence, Security and Resilience Bank (DSRB)

Montreal threw its hat in the ring for the next DSRB at the Banque Nationale du Canada, hosted by Montréal International and Ville de Montréal, with 111 signatories from the business community.

Followed by Halifax this past week, highlighting the defence ecosystem strength and the strategic advantage of being home to Canadian Forces Base Halifax, Canada’s largest naval base and 12 Wing Shearwater.

This follows Vancouver earlier this month, Ottawa-Gatineau in December, and Toronto in November.

The Battle of the Laurentians over the next new North Atlantic bank you’ve never heard of turns into full-fledged Canadian regionalism.

On the continent

The invasion of Ukraine notched another tragic anniversary. Canada has committed more than $25.5 billion in overall multifaceted aid to Ukraine, including $8.5 billion in military assistance.

And in case you missed Hannu Karvonen’s post regarding a major new strategy to strengthen the EU’s Easter Border regions

The EDF Update

Earlier this month, the European Commission amended the European Defence Fund (EDF) Work Programme for 2026 to align the EDF Work Programme with the ‘Mini-Omnibus’ (Regulation (EU) 2025/2653 of 19 December 2025) by implementing simplified procedures for disruptive technologies for defence and reflecting the changes to the Strategic Technologies for Europe Platform (STEP).

What the eurocrat mouthful means:

Applications for the relevant calls have been halved in length, and the number of award criteria has been reduced. In addition, the evaluation process for proposals submitted in response to these calls has been streamlined.

The Mini-Omnibus formally paves the way for Ukraine to become an EDF-associated country, pending negotiations. It moves Ukraine towards deeper European defence innovation ecosystem integration as European defence cooperation programmes are becoming increasingly important for the country.

More Canada-Germany

Minister Joly signed a joint declaration of intent with Germany’s Minister Reiche to expand cooperation in the auto and mobility sector, including in EVs, hydrogen-powered vehicles and batteries.

This agreement strengthens supply chain resilience, supports the clean energy transition and reinforces continued growth in Canada’s automotive sector.

In 2024, two-way merchandise trade reached $30.5 billion, positioning Germany as Canada’s sixth-largest merchandise trading partner and the largest among European Union (EU) member states.

Canada-Europe business deals

Calian Group‘s subsidiary, SatService GmbH had a strategic win with the Bundeswehr (German Federal Armed Forces), delivering capability to support scientific research, modern #MilSATCOM and the training of future Bundeswehr officers, while strengthening resilience, data capacity, and secure communications in support of #C5ISRT operations.

The criticals

Alberta advanced its legal challenge to the Federal Impact Assessment Act, arguing it still overreaches on major projects like pipelines and mines despite recent amendments.

Denison Mines secured a federal licence to begin site preparation and construction at its Wheeler River uranium project, while NexGen Energy reported confidence following hearings for its Rook I uranium project, both in Saskatchewan’s Athabasca Basin.

The Canada Growth Fund also committed up to C$116M toward the acquisition and planned restart of the Thompson nickel mine complex in Manitoba, reinforcing federal backing for critical minerals production.

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Your next bound:

Canadian defence events:

• CDA’s annual Ottawa conference will be 5-6 Mar, 2026, with the topic The Road to 5%. The high-level event is sold-out.

• Registration ends soon for CADSI’s CAF Outlooks 7-9 April in Ottawa.

• Registration opens soon for CANSEC - May 27-28, Ottawa.

European defence events:

• The European Defence Fund Info Days take place 10-11 Mar in Brussels.

• London’s SpaceComm conference takes place 4-5 Mar.

• ITEC 2026, Europe’s largest defence training technology exhibition and technical conference Mar 25-27.

• Undersea defence technology (UDT) takes place Apr 14-16 in London (United Kingdom).

• Hannover Messe takes place 20-24 April. The World’s Leading Trade Fair for the Manufacturing Industry is increasingly embracing the defence sector.

• Europe’s largest land domain conference, Eurosatory, is planned in Paris, 15-19 June.

• The largest airshow takes place in England, Farnborough International Airshow | Farnborough International Airshow 20-24 July, 2026.

• DALO Days - our favourite European tradeshow - takes place 19-20 August in Denmark. The website isn’t up yet.

• Canada is the lead nation at Poland’s MSPO - 34th International Defence Industry Exhibition MSPO ‹ Targi Kielce S.A. 8-11 Sept 2026. MSPO is Canada’s second largest defence presence internationally and a gateway to Ukraine.

Critical Minerals:

• PDAC is next week in Toronto Mar 1-4. The event comes at all-time-record-highs for the mining sector and the TSXV.

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PS. 1,099 have now joined www.canadaxeurope.com, committing to improving trans-Atlantic relations.

2026 has started and you’re already behind!

Here are the top Cdn defence industry events to execute your DIS sovereign capability development this Winter / Spring, in chronological order:

- Jan 27 - C4ISR and Beyond 2026 (Ottawa)

- Feb 24 - ShipTech 2026 (Ottawa)

- Feb 27 - National Indigenous Defence Conference 2026 | OneHoop (Ottawa)

- March 5-6 - CDA Ottawa Conference (Ottawa)

- April 7-9 - CADSI CAF Outlooks (Ottawa)

- April 13-14 - International Aerospace Innovation Forum (Montreal)

- April 14-15 - Canadian Naval Maintenance Symposium (Quebec)

- May 12-14 - Maritech (Victoria)

- May 27-28 - CANSEC (Ottawa)

I don’t know what’s in the water out West but there’s a slew of regional events to consider if you want to grow West:

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Western Regional Industry Events

• Western Innovation Forum 2026 – February 24-26 | Virtual

• Saskatchewan Aerospace and Defence Forum - March 10-11 | Saskatoon

• DEFSEC West - March 24-26 | Calgary

• Alberta Aerospace & Defence Summit - May 3-5 | Edmonton

Did I miss any? Got any favourites?

CADSI’s Outlooks are my go-to.

Leave some advice for others on what you should attend!

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We were getting ready to release another What’s making waves across the Atlantic, but the surprising number of announcements at the Munich Security Conference made it front-end heavy. So instead we’re splitting the apple in two - releasing MSC first, followed by another release towards the back of the week.

Let’s get started.

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Munich Security Conference

The Munich Security Conference covers the gamut of European security and defence, the future of the transatlantic relationship, the revitalization of multilateralism, competing visions of the global order, regional conflicts, and the security implications of technological advances.

Canada’s tragic mass shooting in Tumbler Ridge cancelled Prime Minister Carney’s participation at the Munich Security Conference in Germany, as well as the launch of Canada’s Defence Industrial Strategy.

National media coverage has understandably not picked up on the advances on many diplomatic fronts.

However, three Canadian cabinet ministers attended: National Defence Minister David McGuinty, Foreign Affairs Minister Anita Anand, and Artificial Intelligence Minister Evan Solomon.

Key outcomes

MSC led to numerous developments:

• Canada celebrated the launch of a new Sovereign Technology Alliance to strengthen cooperation among trusted partners on advanced technologies, and building on the Canada–Germany Digital Alliance announced in Dec 2025.

• Minister McGuinty signed off on joining the EU’s Security Action for Europe (SAFE).

• Canada agreed to a Joint Vision Statement with the Netherlands, agreeing to reinforce defence and industrial cooperation, including continued support for Ukraine and the exploration of new commercial opportunities and investments.

• Canada and France agreed to a Roadmap toward a strategic partnership. The Roadmap will deliver actionable outcomes across areas of shared interest and highlights the two countries’ cooperation to advance mutual defence priorities.

• Canada and Denmark signed a defence Cooperation Memorandum of Understanding, which will enable enhanced cooperation in defence and security activities, particularly in the Arctic and the North Atlantic, as well as defence innovation, defence materiel and industrial cooperation, mutual logistics support, and training.

  

The conference also led to a Letter of Intent on multinational approaches to military airworthiness, and Canada joining the Initial Alliance Future Surveillance Control Support Partnership Committee.

Finally, Canada hosted a Northern Defence Dialogue with Arctic Allies, including Finland, Iceland, and the Kingdom of Denmark, Greenland and the Faroe Islands, Norway, Sweden and the United States.

If you’re looking for the official press release, or some minor news coverage for more details.

These developments signal that Canada is not just a rhetorical partner in transatlantic security and Ottawa is embedding Canadian defence interests into multilateral efforts.

Btw, the new announcement date for Canada’s Defence Industrial Strategy is now tomorrow Tues 17th.

PS. 1,072 have now joined www.canadaxeurope.com, committing to improving trans-Atlantic relations. Forward this to someone who hasn’t!

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Let’s get started.

Between three oceans

Vimy Forge launched its first cohort, welcoming 10 companies to Fredericton next month. Vimy Forge is Canada’s first national defence accelerator.

The companies span critical capabilities across AI, cyber, autonomy, space, robotics, advanced materials, and unmanned systems - technologies that matter for national security, economic resilience, and allied interoperability.

Quebec’s Davie and Sault Ste. Marie’s Algoma celebrated the rolling of Canadian steel for the construction of the Canadian Coast Guard’s Polar Max icebreaker. It builds on years of planning and collaboration working with Algoma Steel, Stigterstaal Canada, the Université du Québec à Chicoutimi, and other Canadian industry partners since 2022 to secure domestic steel solutions for the Polar Max Program and for Canada’s next generation of complex vessels.

Vancouver launched its bid for the Defence, Security, and Resilience Bank, (joining Toronto, Ottawa and Montreal in the running) touting a unique combination of strengths that align with DSRB:

• strategic global position that connects NATO partners with key allies in the Indo-Pacific region, and features an active, robust consular corps from allied nations;

• capacity to host the DSRB using existing institutions, infrastructure and talent;

• anchoring B.C.’s defence-related industrial base across marine, aerospace and ocean tech;

• strengths in AI, quantum tech, aerospace, marine and cybersecurity with rapidly growing dual-use innovators, such as Photonic, AbCellera and Sanctuary AI;

• being home to Canada’s largest and most-integrated port, and world-class airport;

Photon-IV, a Canadian deep‑tech startup building intelligent defence network systems, has been awarded R&D funding through a $250,000 contract under the Innovation for Defence Excellence and Security (IDEaS) program of the Department of National Defence. ESA programs might be a next step?

Canadian Patrol Submarine Project

Germany’s TKMS announced the launch of the Canadian Defence & Dual-Use Innovation Ecosystem (#CDDE), a national initiative designed to strengthen Canada’s ability to translate advanced research into deployable defence capabilities and scalable civilian applications.

The CDDE will be launched with core academic partners, including Western University (in Southern Ontario). The university signed a Memorandum of Understanding (MoU) with TKMS, affirming its commitment to international and private-sector partnerships that support innovative, made-in-Canada solutions.

TKMS also signed a Strategic Teaming Agreement with EllisDon to support the Canadian Patrol Submarine Project. This adds an infrastructure giant to the submarine team, rounding out the team as Toronto’s EllisDon is a top 5 construction company in Canada. Infrastructure is expected to be a large portion of the Canadian content on the program.

On the continent

Canada appointed Bill Blair as High Commissioner for Canada in the United Kingdom of Great Britain and Northern Ireland and Nathalie G. Drouin as Ambassador of Canada to France and Monaco. Both have substantial defence and national security backgrounds and will be able further develop those relationships abroad.

Another Frontex Industry Day! An opportunity for Canadian companies to showcase their Digital Twin solutions to the Warsaw-based European Border and Coast Guard Agency. Frontex is excited to invite you to the next Industry Day on 24 Feb 2026 (online). The event is your chance to showcase your tech to Border Security experts and explore how Digital Twin and immersive technologies can address complex operational challenges faced by the European Border and Coast Guard community.
Register here or check out the link for more info.

The UK launched its Search for Britain’s next defence unicorn kicks off with new £20 million fund - GOV.UK.

The European Defence Agency launched an SME and startup focused call for innovators in defence (cascade funding), through the #MaJoR project.

Under the indirect management of EDA, EDF project MaJoR is looking for up to 30 innovators to act as technology/solution providers and tackle defence innovation challenges across air, sea, and land domains.

Successful applicants will receive up to €60,000 in funding and participate in a six-month support and business development programme. Apply by 25 March 2026.

Canada Latvia

More details were released regarding the Canada Latvia MOU CCC signs MoU to enhance Canada-Latvia defence and security cooperation. The MoU establishes a structured framework for Canadian Latvian defence cooperation focused on procurement, capability development, and joint projects. Canada already plays a major role in Latvia’s security architecture as the nation leading NATO’s Multinational Brigade Latvia under Operation REASSURANCE – the largest Canadian overseas military deployment.

Ukraine will operate ten export centers in Europe focused on defense technology, is one coming to Canada sometime soon?

Volodymyr Zelenskyi, President of Ukraine: “Today, we are opening exports. Ten export centers across Europe will be operating as early as 2026 – in the Baltic and Nordic states. Ten representative offices will be active in 2026. By mid-February, we will already see the production of our drones in Germany. I will receive the first drone. This is a production line that is operational. Production lines are also operating in the United Kingdom. All of these are Ukrainian technologies.”

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The criticals

‘Project Vault’, is a U.S. strategic reserve announced by Trump to shield manufacturers from supply disruptions. Funded by $10B EXIM Bank loan plus $2B in private capital, it targets rare earths and key metals like lithium and nickel, reducing reliance on China amid price volatility and export curbs.

Canadian Robert Friedland and Vancouver headquartered Ivanhoe Mines was at the centre of it all. Ivanhoe Mines Founder and Executive Co-Chairman Robert Friedland Meets with U.S. President Donald J. Trump at the White House for the Launch of Project Vault, a $12 Billion Strategic Critical Minerals Stockpile – Ivanhoe Mines

The U.S. Department of Defense’s $18M investment in Canada‘s 5N Plus will enable significant expansion of germanium refining capacity, directly bolstering North American supply chains for critical defense technologies like night-vision optics, surveillance, and satellite solar cells.

The deal underscores Canada‘s growing role as a trusted source for strategic minerals, reducing U.S. reliance on adversarial suppliers and injecting capital into domestic processing infrastructure, in this case foreign direct investment from the US Department of Defence.

For the Canadian mineral resource sector, it signals accelerating cross-border partnership, which follows over $60M in prior U.S. funding for Canadian firms, likely spurring further investments in refining, recycling, and midstream capabilities while enhancing Teck Resources’ upstream germanium output (which provides germanium to 5N) and 5N Plus’ market value, which has surged over 650% in three years.

Your next bound:

Canadian defence events:

• If you prefer Ships, Vanguard’s annual Shiptech forum takes place this 24 Feb, in Ottawa.

• CDA’s annual Ottawa conference will be 5-6 Mar, 2026. The high-level event is already 70% sold out.

• Registration ends soon for CADSI’s CAF Outlooks 7-9 April in Ottawa.

• Registration opens soon for CANSEC - May 27-28, Ottawa.

European defence events:

• The European Defence Fund Info Days take place 10-11 Mar in Brussels.

• ITEC 2026, Europe’s largest defence training technology exhibition and technical conference Mar 25-27.

• Undersea defence technology (UDT) takes place Apr 14-16 in London (United Kingdom).

• Given the Canadian Patrol Submarine Project, consider attending Hannover Messe, 20-24 April.

• Europe’s largest land domain conference, Eurosatory, is planned in Paris, 15-19 June.

• The largest airshow takes place in England, Farnborough International Airshow | Farnborough International Airshow 20-24 July, 2026.

• Canada is the lead nation at Poland’s MSPO - 34th International Defence Industry Exhibition MSPO ‹ Targi Kielce S.A. 8-11 Sept 2026. MSPO is Canada’s second largest defence presence internationally and a gateway to Ukraine.

Critical Minerals:

• PDAC is planned in Toronto Mar 1-4.

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