Australia and Canada have signed a landmark $2.5-billion agreement that will deliver an Over-the-Horizon Radar system to bolster Canada’s Arctic surveillance and defense capabilities.
The contract advances the Arctic Over-the-Horizon Radar program into its next phase, with construction and development activities scheduled to begin in 2026. Canadian authorities aim to achieve initial operational capability by December 2029.
The radar system will employ high-frequency radio waves reflected by the ionosphere, allowing it to detect and track aerial and maritime targets far beyond the Earth’s curvature. BAE Systems Australia will provide technology derived from the Jindalee Operational Radar Network, one of the world’s most advanced over-the-horizon surveillance systems, capable of monitoring areas up to 3,000 kilometers away.
Once operational, the capability will strengthen Canada’s ability to monitor northern approaches, improve threat detection, and enhance the defense of both Canadian and broader North American airspace.
The agreement also emphasizes industrial and technological collaboration. Canadian firms will work with BAE Systems Australia to cultivate local expertise in over-the-horizon radar technologies and reinforce the domestic defense sector. Between 2026 and 2033, the program is expected to generate nearly $290 million in annual economic activity in Canada and support roughly 2,270 jobs each year. Additionally, it will maintain around 300 specialized technical roles in Australia and create opportunities for future joint innovation and capability development.
