Australia, Canada Sign $1.75 Billion Deal For Arctic Radar System — Update

By Rhiannon Hoyle

Canada agreed to buy an advanced radar system from Australia in a deal valued at roughly US$1.75 billion, as Ottawa ramps up defense spending to detect and deter threats in the Arctic.

The deal for the so-called over-the-horizon technology, valued at 2.5 billion Australian dollars, follows a partnership struck between the two nations last year 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, and Australia's largest-ever defense export.

Canadian Prime Minister Mark Carney pledged to accelerate military spending to help protect North America and placate longstanding concerns from U.S. officials about Canada's defense capability. Canada's planned over-the-horizon radar is meant to detect low-flying missiles over the North Pole.

President Trump last year called missiles "the most catastrophic threat facing the United States."

"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 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.

Monday's agreement, signed in Canberra, 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 22, 2026 01:05 ET (05:05 GMT)