Australia has signed its largest defence export contract to date, agreeing to provide Over-the-Horizon Radar (OTHR) technology to Canada under a deal valued at record A$2.5bn ($1.75bn).
This deal marks Australia’s largest ever defence export and Australia’s first international sale of its advanced long-range detection system.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
A formal contract was signed in Canberra on 22 June 2026 by Canada’s Secretary of State Fuhr and Australia’s Deputy Prime Minister and Minister for Defence, Richard Marles.
This agreement will see Canada incorporate the radar system into its Arctic Over-the-Horizon Radar (A-OTHR) programme.
As part of the arrangement, BAE Systems Australia has been appointed to lead the industrial effort, with work scheduled to commence on 1 July 2026.
Alongside Canadian partners, the company will focus on developing domestic expertise in operating and maintaining the radar technology, with a target of achieving initial operational capability by December 2029.
Canada intends to use the radar system, based on the Jindalee Operational Radar Network (JORN), to boost its surveillance of northern and Arctic airspace and maritime approaches.
BAE Systems Australia, which offers full lifecycle support for complex OTHR capabilities, including JORN, stated that the radar is capable of wide-area detection at distances ranging from 1,000 to 3,000km.
It can track aircraft, ships, and missiles and is also involved in border operations, disaster relief, and search and rescue efforts in Australia.
The Canadian government announced in March 2025 that it would invest more than CAD$6bn in the A-OTHR project.
It expects this programme to contribute about $290m per year to the country’s gross domestic product and support roughly 2,270 jobs annually between 2026 and 2033.
Canada National Defence Minister David J. McGuinty said: “Through this partnership with Australia to deliver advanced radar capabilities, we are enhancing the Canadian Armed Forces’ ability to detect, deter, and respond to emerging threats with greater speed, reach, and precision.
“This investment reinforces our commitment to Arctic sovereignty, strengthens continental defence through NORAD, and ensures Canada remains prepared to meet evolving security challenges and protect our national interests at home and abroad.”
