Australia, Canada Sign $1.75 Billion Deal For Advanced Radar System

By Rhiannon Hoyle

Canada agreed to buy an advanced radar system from Australia in a deal valued at roughly US$1.75 billion, Australia's largest-ever defense export.

The formal agreement for the over-the-horizon radar system, valued at 2.5 billion Australian dollars, follows a partnership agreed last year for the two nations to work together on Canada's Arctic radar capability as it modernizes the North American Aerospace Defense Command.

It marks the first international sale of the Australian radar system, one of the most advanced over-the-horizon capabilities in the world.

The technology works by refracting high-frequency electromagnetic waves off the ionosphere--an upper layer of the atmosphere--to detect objects thousands of kilometers away that are not visible to conventional radars because of the Earth's curvature, said BAE Systems, Australia's industry partner. Canada's planned over-the-horizon radar is meant to detect low-flying missiles over the North Pole.

"Through this partnership with Australia to deliver advanced radar capabilities, we are enhancing the Canadian Armed Forces' ability to detect, deter, and respond to emerging threats with greater speed, reach, and precision," said David McGuinty, Canada's defense minister.

The agreement is the first stage of a broader collaboration on Canada's Arctic radar capability, Australian officials said.

"As close friends and valued partners, Australia and Canada's relationship is grounded in decades of operational cooperation, shared strategic interests, and deep collaboration through the Five Eyes partnership," said Australian Prime Minister Anthony Albanese.

He added that the "agreement marks a significant milestone in Australian defense trade and lays the foundation for deeper and mutually beneficial defense industry collaboration with Canada."

BAE Systems is scheduled to begin work to deliver the program on July 1. Canadian officials said the country aims to achieve initial operational capability by December 2029.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

June 21, 2026 23:49 ET (03:49 GMT)