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4h ago

Canada Signs $2.5 Billion Deal With Australia for Arctic Over‑the‑Horizon Radar

The purchase will strengthen NORAD early warning through long‑range Arctic surveillance, with industrial work intended to grow Canadian sustainment skills.

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A tent belonging to the 1st Canadian Ranger Patrol Group under aurora borealis as Canadian Armed Forces deploy to Operation Nanook-Nunalivut, a yearly series of drills designed to highlight the military's ability to defend the Canadian Arctic, in Yellowknife, in February.
Australia's Prime Minister Anthony Albanese gestures during a press conference, in Sydney, Australia, June 18, 2026. REUTERS/Hollie Adams
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Overview

  • Canadian and Australian governments signed the procurement and rights agreements on Monday, June 22, 2026, moving the Arctic Over‑the‑Horizon Radar (A‑OTHR) program into its delivery phase.
  • BAE Systems Australia is the named industry partner and is scheduled to begin delivery work on July 1, 2026, with Canada targeting initial operational capability by December 2029.
  • The contract commits about A$2.5 billion (reported as roughly US$1.75–$1.8 billion) for the first A‑OTHR unit and includes an Industrial and Technological Benefits package requiring work with Canadian firms to build domestic expertise.
  • The A‑OTHR will place transmitting and receiving stations in southern Ontario’s Kawartha Lakes region while a second Polar OTHR unit for the Far North is planned but its precise location remains undisclosed.
  • Over‑the‑horizon radar detects objects beyond line‑of‑sight by bouncing high‑frequency radio waves off the ionosphere to cover ranges measured in hundreds to thousands of kilometres, and the Canadian government says the project will bolster Arctic domain awareness, NORAD warning time, and produce an estimated annual GDP and jobs boost during 2026–2033.