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Canada and Australia Forge $6 Billion Technology Partnership for Arctic Over-the-Horizon Radar

Australia's Jindalee Operational Radar Network (JORN) has been snapped up by Canada for its Arctic defence. (Supplied: Department of Defence)
Australia’s Jindalee Operational Radar Network (JORN) has been snapped up by Canada for its Arctic defence. (Supplied: Department of Defence)

July 17, 2025 – In a landmark move to bolster Arctic security, Canada has entered into a $6 billion technology partnership with Australia to develop an advanced Arctic Over-the-Horizon Radar (A-OTHR) system. Announced by Canadian Prime Minister Mark Carney on March 18, 2025, during a visit to Iqaluit, Nunavut, this collaboration leverages Australia’s world-leading expertise in over-the-horizon radar technology to enhance Canada’s ability to monitor and defend its vast northern frontier. The initiative, part of Canada’s $38.6 billion North American Aerospace Defense Command (NORAD) modernization plan unveiled in 2022, underscores a strategic pivot toward deepening ties with like-minded allies amid growing geopolitical tensions in the Arctic.

The Department of National Defence announced today the selection of the first transmit and receive sites for the Arctic Over-the-Horizon Radar (A-OTHR) project. The selection of the first two sites sets the foundation for further development and expansion and is a major milestone toward reinforcing Canada’s security and sovereignty in the Arctic.

The A-OTHR project is anticipated to reach initial operational capability by the end of 2029. It will ultimately require four sites to be fully operational: two transmit sites and two receive sites.

For a permanent transmit site, the Department of National Defence (DND) has acquired 163 hectares of vacant property in the northern part of Thistle Trail, slightly north of Bexley Township in the City of Kawartha Lakes, Ontario.

A preliminary receive site has also been identified, consisting of 288 hectares of agricultural land in Clearview Township, Ontario. Acquiring this site enables DND to deliver an initial, functional capability that can be implemented much sooner than the full capability. DND continues to explore potentially suitable options for the remaining sites.

A Strategic Response to Arctic Challenges

The Arctic region, increasingly contested due to its strategic importance and vast resources, has become a focal point for global powers. With melting ice opening new shipping routes and exposing untapped natural resources, nations like China and Russia are intensifying their presence in the region, raising concerns for Canada’s sovereignty. The A-OTHR system, based on Australia’s Jindalee Operational Radar Network (JORN), will enable Canada to detect and respond to air and maritime threats at unprecedented ranges by bouncing radar signals off the ionosphere to see beyond the Earth’s curvature. This capability is critical for monitoring Canada’s northern approaches, which span vast, sparsely populated areas with minimal air traffic, making it an ideal environment for such technology.

Prime Minister Carney emphasized the urgency of the project, stating, “Our adversaries are increasingly emboldened. Canada must be strong in our partnerships, particularly NORAD, and we cannot and should not look first to others to defend our nation.” The partnership with Australia, a long-standing defense ally with shared interests in securing remote northern regions, is seen as a pragmatic step to deploy cutting-edge technology quickly and effectively.

The Technology: Australia’s JORN System

Australia’s JORN (Jindalee Operational Radar Network), developed by BAE Systems Australia and operational for over 30 years, is recognized as one of the most advanced over-the-horizon radar systems globally. Capable of tracking aircraft and ships up to 3,000 kilometers away, JORN has been a cornerstone of Australia’s defense strategy, monitoring its northern and maritime approaches.

The Canadian A-OTHR will adapt this technology to cover the Arctic, providing early warning capabilities from the Canada-U.S. border to the Arctic Ocean. The system’s massive antenna arrays, with geographically separated transmit and receive sites, will enhance NORAD’s situational awareness, enabling faster responses to potential threats.

Controversy and Domestic Concerns

While the partnership has been hailed as a step forward for Arctic security, it has sparked controversy among Canadian defense firms. Ottawa-based D-TA Systems, a leader in over-the-horizon radar technology, expressed disappointment at being overlooked despite receiving government funding to develop similar systems. Critics, including D-TA’s chairman Dipak Roy, argue that choosing foreign technology over domestic expertise undermines Canada’s industrial capabilities and could lead to reliance on international supply chains for maintenance and upgrades. The decision has been called a “slap in the face” by some in the Canadian defense industry, who worry about intellectual property rights remaining with Australian partners.

However, the Canadian government defends the partnership, citing Australia’s proven track record with JORN and the need for rapid deployment. The project includes provisions under Canada’s Industrial and Technological Benefits (ITB) Policy, requiring Australian partners like BAE Systems to invest in Canadian companies, fostering expertise and job creation. The DND stated, “This partnership with Australia, which currently operates one of the most advanced OTHR capabilities in the world, will provide the best solution for strengthening Canadian Armed Forces domain awareness in Canada’s northern approaches.”

Broader Implications for CANZUK and Global Security

The Canada-Australia partnership is a significant milestone for CANZUK cooperation, a framework promoting closer ties among Canada, Australia, New Zealand, and the United Kingdom. The deal has drawn interest from the UK, which is reportedly considering acquiring JORN technology to bolster its own Arctic and Indo-Pacific defense strategies. This collaboration signals a shift toward diversified alliances, reducing Canada’s reliance on traditional North American partnerships, particularly amid strained U.S.-Canada relations.

The A-OTHR project also aligns with Canada’s broader Arctic strategy, which includes a $420 million investment to expand year-round military presence and $253 million for Nunavut infrastructure to support Indigenous communities. These measures aim to assert Canadian sovereignty while addressing economic and environmental challenges in the region.