Canada purchases Australian Arctic radar in a historic A$2.5 billion defense export deal.

      Australia has been enhancing an unconventional radar system for decades, one that sends signals to the ionosphere to observe areas thousands of kilometers beyond the Earth's curve, and throughout that time, it kept this technology exclusive. On Sunday, it was sold internationally for the first time.

      Canada agreed to acquire an Arctic over-the-horizon radar based on Australian technology in a deal valued at approximately A$2.5 billion, or around US$1.75 billion, which Canberra labeled as its largest-ever defence export.

      The agreement was finalized in Canberra by Australia’s Deputy Prime Minister and Defence Minister, Richard Marles, alongside Canada’s Secretary of State for Defence Procurement, Stephen Fuhr.

      This deal builds on the Jindalee Operational Radar Network, the system that Australia utilizes to monitor its own northern borders, which Canberra characterizes as the world's leading large-scale, long-range over-the-horizon radar, capable of surveillance at distances of about 1,000 to 3,000 kilometers. BAE Systems Australia is the main contractor for the project.

      Canada intends to use the radar to monitor the Arctic. As polar ice decreases and the region becomes more accessible, Ottawa has sought ways to observe the vast and largely uninhabited northern area. Over-the-horizon radar provides a method to track airspace for aircraft and missiles without the need for traditional installations across the tundra.

      This purchase is part of Canada’s NORAD modernization initiative, a C$38.6 billion program announced in 2022 that aims to upgrade continental defense alongside the United States over the next two decades.

      The deal has been in the works for some time. Prime Minister Mark Carney indicated Canada’s desire to collaborate with Australia on Arctic radar in early 2025, with the two governments signing a technology partnership that June. Later that year, Canada identified its first sites following public consultations, reportedly pointing to the Kawartha Lakes region in southern Ontario. The complete system is not predicted to be operational for several years.

      For Australia, the industrial benefits of the sale are partly appealing. It is anticipated to support hundreds of jobs domestically, and BAE Systems Australia has committed to collaborating with Canadian companies to construct the radar locally and enhance Canada’s defence industrial base, with the construction phase expected to generate thousands of jobs annually in Canada through the early 2030s.

      Exporting this sovereign capability also strengthens the defence relationship between two middle powers that increasingly align, both being treaty partners of the United States and sharing concerns about similar developments in the Pacific and the Arctic.

      There is strategic reasoning behind the hardware. Over-the-horizon radar is gaining attention due to its relatively low operational costs and wide range, as well as its effectiveness in detecting long-range aircraft and cruise missiles, which are primary concerns for NORAD planners.

      By selling the technology rather than solely using it, Australia transforms a decades-old research program into an export opportunity and secures a role in how a close ally monitors its own borders.

      The broader context is a defence technology market flooded with investment and urgency, with significant capital flowing into European defence funds and startups, and governments pressed to bridge the gap between their production capabilities and requirements.

      Much of this growth has been focused on software and space, with companies like Planet Labs providing continuous satellite surveillance to NATO and national militaries, along with a influx of newer firms pursuing advancements in drones and air defense. The common theme aligns with the Arctic deal: the capacity to observe first across previously unmonitored distances.

      What distinguishes this radar sale is its age. The primary focus in defence technology has centered on software, autonomy, and orbital systems. This agreement serves as a reminder that some of the most valuable defence technologies are decades old, physically substantial, and based on bending radio waves over the horizon. Australia dedicated half a century to perfecting it, and Canada has now become the first nation willing to invest in a copy.