June 22, 2026 – Canada has taken a major step forward in strengthening its northern defences by formalizing a comprehensive partnership with Australia to deliver a new Arctic Over-the-Horizon Radar system.
In a ceremony held in Canberra on the 21st of June, Secretary of State for Defence Procurement Stephen Fuhr signed key agreements with Australia’s Deputy Prime Minister and Minister for Defence Richard Marles, marking the transition of the A-OTHR program from the planning stage into active delivery.
The new system will provide Canada with advanced long-range surveillance capabilities designed to detect and track airborne threats approaching North America through the Arctic and northern regions. Unlike conventional radars that are limited by the curvature of the Earth, over-the-horizon radar works by refracting high-frequency signals off the ionosphere, the electrically charged upper layer of the atmosphere. This allows the radar to “see” far beyond the horizon, giving Canadian and NORAD commanders earlier warning of potential threats and more time to respond.
Australia brings decades of proven expertise in this technology to the partnership. Through a Government-to-Government model, Canada will acquire and adapt Australia’s established over-the-horizon radar capability, which significantly reduces technical risk and accelerates delivery. The agreements signed today include a Government-to-Government Acquisition Arrangement that sets the overall framework for collaboration, an OTHR Rights Agreement that governs information sharing, technology transfer, and intellectual property protection between Canada, Australia, and BAE Systems Australia, a production contract between Australia and BAE Systems Australia to build the system, and an Industrial and Technological Benefits agreement that requires meaningful participation by Canadian companies throughout the acquisition and sustainment phases.
Work on the program is scheduled to begin on July 1, 2026. Canada expects to achieve initial operational capability for the Arctic Over-the-Horizon Radar by December 2029. The overall program is valued at more than six billion dollars, with approximately 2.5 billion dollars allocated specifically to the procurement of the radar system itself. The remaining funds will cover infrastructure, site preparation, integration, and other supporting costs.
The A-OTHR system forms a key part of Canada’s broader NORAD modernization efforts. It will enhance domain awareness over Canada’s vast northern approaches at a time when activity in the Arctic is increasing. By leveraging a mature and combat-proven technology from a trusted ally, Canada gains a critical capability more quickly and with lower risk than developing an entirely new system from scratch.
The partnership also delivers important economic benefits at home. The Industrial and Technological Benefits agreement will create opportunities for Canadian companies to participate in advanced radar technologies, system integration, and long-term sustainment work. This investment is expected to support high-quality jobs and help strengthen Canada’s domestic defence industrial base while building lasting expertise in surveillance and radar systems.
All technology and information sharing under the agreements will be managed under strict security protocols. Canada, Australia, and BAE Systems Australia will protect sensitive information and intellectual property according to established requirements, ensuring effective collaboration while safeguarding national interests.
Today’s signing represents a significant milestone in Canada-Australia defence cooperation and underscores both countries’ commitment to shared security priorities. With initial capability targeted for late 2029, the Arctic Over-the-Horizon Radar will soon provide Canada with a powerful new tool to monitor its northern approaches and contribute to the collective defence of North America.
