Australia and Canada sign $1.75B long-range radar deal

Australia and Canada have signed an agreement to bring Australian-designed over-the-horizon radar technology to Canada, in a deal aimed at strengthening Arctic early warning and long-range surveillance.

The first phase of the agreement was signed in Canberra on June 22 by Australian Defense Minister Richard Marles and Canadian Secretary of State for Defence Procurement Stephen Fuhr. Reporting on the deal differed on the headline value, with AP describing it as US$1.75 billion and other outlets referring to A$2.5 billion, a gap that appears to reflect currency conversion rather than a separate contract.

The system is intended to give Canada early warning coverage from the Canada-U.S. border into the Arctic. Over-the-horizon radar can detect distant objects beyond the range of conventional radar by bouncing signals off the ionosphere, allowing operators to look far beyond normal line-of-sight limits.

What the deal covers

The agreement centers on Australian over-the-horizon radar technology being built in Canada. AP reported that the deal was signed in Canberra, while later coverage said the arrangement reflects a strategic expansion of the two countries’ defense relationship.

The project is also being described as Australia’s largest defense export to date. That makes the contract significant not only as a procurement decision for Canada, but as a major industrial win for Australia’s defense sector.

BAE Systems Australia is reported to be supporting the project. Reporting so far has not clearly set out the full industrial workshare, the detailed construction timeline in Canada, or whether this first phase is the start of a broader rollout.

Strategic context

For Canada, the radar system fits a wider push to improve Arctic surveillance and domain awareness as concerns about the region grow. The capability is meant to strengthen monitoring of approaches into the far north, where conventional radar coverage is more limited.

For Australia, the deal turns a long-developed domestic capability into an export program of strategic weight. Australia’s Jindalee and over-the-horizon radar experience has been built over decades to support long-range surveillance from the country’s north, and this agreement extends that expertise into a new theater.

The transaction also deepens ties between two Five Eyes partners that already cooperate closely on defense and intelligence. Coverage said Canada selected the Australian system over U.S. alternatives, underscoring the competitiveness of Australia’s radar technology in an allied procurement process.

Marles described the arrangement as a strategic partnership in the future development of over-the-horizon radar. Fuhr said Australia and Canada have stood shoulder to shoulder for generations and framed Australia as a strong partner in the effort.

What remains unclear

Several important details still need formal clarification. The exact contract currency and final all-in value remain unresolved in public reporting, even though the different figures appear to describe the same deal.

The delivery schedule, the pace of construction in Canada, and the final industrial participation split have also not been spelled out. A formal government release could still provide those details, along with confirmation of the companies involved beyond BAE Systems Australia.

For now, the agreement stands as a confirmed step toward embedding Australian radar technology into Canada’s Arctic security architecture. It is a significant procurement for Canada, a landmark export for Australia, and another sign of closer defense integration between the two countries.