A new $2.5-billion agreement between Canada and Australia will see the delivery of an advanced Over-the-Horizon Radar system designed to strengthen Canada’s ability to monitor and defend its Arctic territory.
The contract marks the transition of Canada’s Arctic Over-the-Horizon Radar program into the execution stage, with work scheduled to begin in mid-2026 and initial operational capability targeted for December 2029.
The technology uses high-frequency radio waves that bounce off the ionosphere, allowing operators to detect and track air and maritime targets far beyond the limits of traditional line-of-sight radar systems. Through the agreement, BAE Systems Australia will provide expertise and technology derived from Australia’s Jindalee Operational Radar Network, which can monitor activity up to 3,000 kilometers away.
Upon completion, the system will deliver enhanced long-range surveillance capabilities, enabling earlier detection of potential threats and improving decision-making for the protection of Canadian and North American airspace.
In addition to strengthening security, the program is expected to generate substantial economic benefits. BAE Systems Australia will collaborate with Canadian industry partners to develop local radar expertise and expand the country’s defense industrial capabilities. The initiative is forecast to create more than 2,200 jobs annually in Canada and contribute close to $290 million per year to the national economy, while also supporting hundreds of high-skilled positions in Australia.
