Executive Summary:
Australia and Canada have signed a A$2.5 billion (US$1.75 billion) agreement to deliver an Arctic Over-the-Horizon Radar (A-OTHR) capability for Canada. The project, supported by BAE Systems Australia, marks Australia’s largest-ever defense export and strengthens North American early warning and Arctic surveillance capabilities.
The agreement will see Australia transfer its proven Over-the-Horizon Radar (OTHR) technology to Canada, with BAE Systems Australia serving as the principal industry partner supporting both governments throughout the program.
The deal was formally announced during meetings between Australian Deputy Prime Minister and Defence Minister Richard Marles and Canadian Secretary of State for Defence Procurement Stephen Fuhr in Canberra.
What Is the Arctic Over-the-Horizon Radar Program?
The Arctic over-the-horizon radar program is designed to provide Canada with advanced early warning and surveillance capabilities across its vast northern territories.
Unlike conventional radar systems that are limited by the Earth’s curvature, over-the-horizon radar uses high-frequency radio waves that refract off the ionosphere. This allows operators to detect and track aircraft, ships, and missile threats thousands of kilometers away.
Australia’s Jindalee Operational Radar Network (JORN), the foundation for the Canadian system, can monitor targets at distances of up to 3,000 kilometers. The technology has been operational for decades and is considered one of the most mature over-the-horizon radar capabilities in service today.
According to BAE Systems Australia, the Canadian solution will build upon more than 40 years of Australian expertise in high-frequency surveillance and long-range threat detection.
Why the Arctic Matters
The Arctic has become increasingly important for North American defense planning.
Canada’s Arctic region accounts for roughly 40% of the country’s landmass and sits across strategic approaches that connect North America to Europe and Russia. Growing military activity, increased commercial traffic, and changing environmental conditions have intensified the need for persistent surveillance across the region.
Canadian officials have described the Arctic Over-the-Horizon Radar project as a key element of a broader surveillance and communications architecture intended to improve situational awareness and threat detection across the north.
The radar capability is also closely linked to Canada’s ongoing efforts to modernize continental defense infrastructure and strengthen early warning systems supporting North American security.
BAE Systems Australia to Lead Industry Support
Under the agreement, BAE Systems Australia will act as the primary industry partner for the Arctic over-the-horizon radar project. The company already provides lifecycle support and modernization services for Australia’s JORN network.
BAE stated that its experience in installation, operation, upgrades, and sustainment of complex OTHR systems positions it to support rapid delivery of the Canadian capability. The company also emphasized opportunities for collaboration between Australian and Canadian defense industries as the project progresses.
The agreement is expected to generate hundreds of jobs in Australia while creating opportunities for Canadian industry participation through future development, integration, and sustainment work.
Strategic Significance Beyond the Contract
While the A$2.5 billion contract is notable for its size, its broader strategic implications may prove equally important.
The deal represents the first international export of Australia’s indigenous over-the-horizon radar technology, demonstrating growing confidence in Australian-developed defense systems among allied nations.
For Canada, the acquisition provides access to a mature surveillance capability without the lengthy development timeline typically associated with advanced radar programs. For Australia, it reinforces the country’s emergence as a supplier of sophisticated defense technologies rather than solely a customer of foreign systems.
The project also deepens defense cooperation between two members of the Five Eyes intelligence partnership, potentially creating future opportunities for joint capability development and technology sharing.
Looking Ahead
The Arctic over-the-horizon radar program is expected to become a cornerstone of Canada’s future northern surveillance architecture. By leveraging proven Australian technology and industrial expertise, Ottawa aims to accelerate deployment of a capability capable of detecting airborne and maritime threats at extended ranges.
As Arctic security continues to rise on the strategic agenda of allied nations, the Australia-Canada radar partnership highlights the growing role of advanced sensing and early warning technologies in protecting critical northern approaches and strengthening regional deterrence.
