$2.5 Billion in Australian Radar System to Monitor the Arctic
The Government of Canada has finalized the purchase of over-the-horizon radar (OTHR) technology from Australia and the firm BAE Systems Australia. This $2.5 billion investment aims to modernize the surveillance of the country’s northern and Arctic approaches.
The government-to-government agreement was signed in Canberra by Canada’s State Secretary for Defence Procurement, Stephen Fuhr, and Australian Defence Minister Richard Marles.
“This agreement with Australia, which aligns with the collaborative approach advocated in Canada’s Defence Industrial Strategy, represents a major milestone for the Defence Investment Agency as it continues to accelerate equipment acquisition for the Canadian Armed Forces in line with its mandate,” said State Secretary Fuhr.
“This is the largest defence export agreement in Australia’s history, showcasing our close and long-standing friendship with Canada,” added Richard Marles, Australia’s Deputy Prime Minister and Minister for Defence.
This initiative is part of the Arctic Over-the-Horizon Radar (A-OTHR) program.
Unlike conventional radar systems, OTHR technology bounces signals off the ionosphere to overcome the curvature of the Earth, allowing for the detection and tracking of air and maritime threats at ultra-long ranges.
Timeline and Economic Benefits
This political green light marks the transition of the project into its implementation phase.
Work by BAE Systems Australia is scheduled to begin on July 1, 2026. Ottawa is maintaining its target to achieve initial operational capability by December 2029.
According to a press release from the Defence Investment Agency, BAE Systems Australia will collaborate with Canadian companies to transfer technical expertise and integrate the local supply chain.
Government projections estimate that the A-OTHR project will inject nearly $290 million annually into Canada’s gross domestic product (GDP) and support approximately 2,270 jobs per year between 2026 and 2033.
This $2.5 billion project represents a major portion of the overall $6 billion funding envelope pledged in March 2025 by the Canadian Prime Minister for the A-OTHR program.
The initiative is also part of the modernization plan for the detection capabilities of NORAD, the binational North American Aerospace Defense Command.
Related stories from around the North:
Canada: Between Militarization and Disarmament: Constructing Peace in the Arctic, Blog by Heather Exner-Pirot
Finland: Finnish Defence Minister tells party leaders shrinking fighter fleet would be “irresponsible”, Yle News
Greenland: Greenlanders vote in election dominated by Trump’s control pledge, Reuters
Iceland: Iceland’s FM announces defence review, calls revamped security policy ‘urgent’, Eye on the Arctic
Norway: Russian jets led mock attack on Arctic Norway radar, intel director says, The Independent Barents Observer
Russia: Video – Inside Russia’s rapid Arctic expansion, CBC News
Sweden: Sweden wants to rebuild its “total defence” system, Radio Sweden
