Canada announced on July 6, 2026, the selection of Germany’s ThyssenKrupp Marine Systems to build 12 conventionally powered Type 212CD submarines in a German-Norwegian joint venture, defeating South Korea’s Hanwha Ocean. The fleet will replace four aging Victoria-class boats acquired from the United Kingdom in the 1990s. The contract, potentially valued at up to $35.2 billion including support, aligns with Canada reaching NATO’s 2 percent defense spending target in 2026.