Canada and Australia have formalized an agreement that will allow Canada to purchase key components for its new Arctic over-the-horizon radar system from BAE Systems Australia, marking a significant step in strengthening North American defence capabilities.
The announcement was made in Canberra on Sunday by Canada’s Secretary of State for Defence Procurement, Stephen Fuhr, alongside Australian Defence Minister Richard Marles.
The federal government has committed more than $6 billion toward the development of the advanced radar network, which is expected to begin operations in December 2029. Designed to enhance surveillance across Canada’s North, the system will provide early warning and tracking of airborne and maritime threats over vast distances.
BAE Systems Australia, which helped develop Australia’s own over-the-horizon radar capability, will work alongside Canadian industry partners to build the Canadian system. According to Fuhr’s office, project work is scheduled to begin on July 1, marking the start of the project’s delivery phase.
As part of the agreement, Canada will invest $2.5 billion through the partnership with Australia to acquire the radar capability.
The radar network will be based in Southern Ontario, consisting of two transmission sites and two receiving sites. The Department of National Defence has already acquired land near Barrie and Kawartha Lakes for the initial locations, a move that generated opposition from some local landowners and prompted petitions against the project.
In a written response issued in May, Defence Minister David McGuinty’s office stated that the radar system’s technical requirements left little flexibility in site selection. Officials said hundreds of potential locations were evaluated before the final sites were chosen.
The over-the-horizon radar system is expected to reach full operational capability by 2043 and forms a central pillar of Canada’s broader NORAD modernization program, a long-term initiative announced in 2022 that is projected to cost $38.6 billion over 20 years.
