Canada to Invest $6B in Australian Radar System for Arctic Defense – Carney

The Canadian government is set to invest over $6 billion in an advanced Australian early warning radar missile detection system, alongside $420 million to bolster the country’s year-round military presence in the Arctic. Prime Minister Mark Carney made the announcement during a visit to Iqaluit, emphasizing Canada’s commitment to sovereignty in the North. The initiative includes an additional $253 million for infrastructure upgrades, particularly to transition Iqaluit’s power supply away from diesel, reinforcing both Arctic sovereignty and reconciliation efforts with Indigenous communities.

Much of the $6.6 billion package stems from previously approved but unallocated budgets, particularly from Canada’s ongoing commitment to modernizing the North American Aerospace Defense Command (Norad) in collaboration with the United States. The Australian radar technology, which has been endorsed by Norad, is considered more advanced than its American counterpart and is expected to be operational by 2029. According to government officials, the system will require minimal infrastructure, with small towers being installed in specific locations such as Peterborough and the Canadian Forces Base Borden.

Carney confirmed the purchase in a call with Australian Prime Minister Anthony Albanese before departing London. However, it remains unclear whether American firms will be allowed to participate in the radar system’s development. The Prime Minister has also signaled a review of Canada’s $19-billion F-35 fighter jet contract with Lockheed Martin, suggesting that future aircraft purchases could favor domestic production to reduce reliance on the U.S. supply chain.

The expanded military presence in the Arctic includes increasing annual training exercises from four to seven, reinforcing Canada’s role as an Arctic nation. Despite these efforts, officials acknowledge that the funding will have a limited impact on Canada’s overall NATO defense spending, which currently stands at 1.37 percent of GDP—well below the alliance’s two percent target.

Carney has committed to meeting the NATO target by 2030, two years ahead of the previous government’s timeline. As global tensions rise, he argues that these investments will enhance Canada’s strategic capabilities and strengthen alliances while ensuring economic benefits for the North. The government’s defense strategy includes not just radar and fighter jets but also future acquisitions of submarines, icebreakers, and early warning aircraft to secure Canada’s Arctic region.