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

Australia and Canada have signed an agreement to build Australian-designed over-the-horizon radar in Canada, in a deal officials say will support Arctic early warning and deepen defense ties between the two allies.

The pact was signed in Canberra on Monday, June 22, by Australian Deputy Prime Minister and Defense Minister Richard Marles and Canadian Secretary of State for Defense Procurement Stephen Fuhr. AP reported the agreement at US$1.75 billion, while Australian coverage described it as A$2.5 billion.

Marles called the deal Australia’s largest defense export and described it as a historic moment in the bilateral relationship. Fuhr said Australia and Canada had stood shoulder-to-shoulder for generations and praised Australia as a strong partner.

What the radar will do

The project centers on Australian over-the-horizon radar technology, a system developed over about four decades that uses ionospheric reflection to detect distant targets. Canada wants the system built there to help cover the long stretch from the Canada-U.S. border into the Arctic.

That Arctic focus has become increasingly important as the region grows in strategic value and surveillance demands rise. The radar is intended to provide early warning over areas that are difficult to monitor with conventional systems.

AP reported that Canadian Prime Minister Mark Carney chose the Australian system over comparable U.S. technology. The decision gives Australia a prominent role in a major North American defense project and underscores Canada’s interest in the Australian design.

Strategic and industrial stakes

For Australia, the agreement is being presented as a landmark export win for its defense industry. Officials have also linked it to broader cooperation with Canada on defense technology, artificial intelligence and critical minerals.

For Canada, the deal offers a long-range surveillance capability tied to Arctic defense and sovereignty. It also reinforces a Five Eyes relationship that already depends on deep intelligence and security cooperation.

BAE Systems Australia will support both governments on development, adding an industrial partner to the government-to-government pact. Reporting has not yet set out the final division of work between Australian and Canadian industry.

The chronology behind the announcement stretches back years. The Australian system has been under development for roughly four decades, and the Canberra signing followed Carney’s selection decision and broader bilateral discussions on defense cooperation.

What comes next

The agreement is the first phase of a wider arrangement, but several implementation questions remain open. Those include when construction and deployment will begin in Canada, how work will be split, and whether the project will expand beyond the initial phase.

Further procurement filings or parliamentary steps could add detail in the coming weeks. For now, the deal stands as a major export for Australia and a significant Arctic surveillance investment for Canada.