Canada to Build Advanced Arctic Surveillance System under a $2.5 billion radar deal with Australia, boosting NORAD modernization and Arctic security.
Canada to Build Advanced Arctic Surveillance System
Canada has taken a major step toward strengthening its Arctic security and continental defence capabilities by finalizing a landmark agreement with Australia and BAE Systems Australia for the acquisition of an Arctic Over-the-Horizon Radar (A-OTHR) system. Announced on 22 June 2026, the deal is valued at approximately $2.5 billion and forms an important component of Canada’s broader NORAD modernization strategy and Arctic surveillance programme.
The agreement reflects the growing importance of the Arctic region in global security calculations. As climate change opens new maritime routes and geopolitical competition intensifies in the Far North, Canada is investing heavily in advanced technologies capable of detecting and tracking potential threats over vast and remote territories.
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What is the Arctic Over-the-Horizon Radar (A-OTHR)?
The Arctic Over-the-Horizon Radar is an advanced long-range surveillance system designed to detect aircraft, missiles, and other aerial objects at distances far beyond the conventional radar horizon. Unlike traditional radar systems that are limited by the curvature of the Earth, over-the-horizon radar technology uses high-frequency radio waves that bounce off the ionosphere before returning to Earth.
This unique capability allows the radar to monitor activities thousands of kilometres away, providing early warning of potential threats approaching Canada’s northern territories. The system is expected to significantly improve situational awareness across the Arctic and support national defence operations.
Connection with NORAD Modernization
The A-OTHR project is closely linked to the modernization of NORAD, the North American Aerospace Defense Command. NORAD is a binational defence organization jointly operated by Canada and the United States, responsible for aerospace warning, aerospace control, and maritime warning across North America.
Modern security challenges, including advanced missile technologies and increasing military activity in polar regions, have highlighted the need for enhanced detection capabilities. The Arctic radar system will help address these challenges by providing earlier and more accurate threat identification.
Technology Based on Australia’s JORN Network
The radar technology being supplied to Canada is derived from Australia’s renowned Jindalee Operational Radar Network (JORN). JORN is one of the world’s most sophisticated over-the-horizon radar systems and has been a key element of Australia’s national security infrastructure for decades.
The Canadian version represents an export adaptation of the proven JORN technology. By leveraging Australia’s expertise in long-range radar operations, Canada aims to rapidly deploy a reliable and effective surveillance solution tailored to Arctic conditions.
Key Project Locations
Under the agreement, critical infrastructure for the radar network will be established in Ontario.
- The transmitting station will be located in the Kawartha Lakes region of southern Ontario.
- The receiving station will be constructed in Clearview Township near Wasaga Beach.
These facilities will work together to create a comprehensive surveillance network capable of monitoring large portions of Canada’s Arctic and northern approaches.
The agreement was officially signed in Canberra by Stephen Fuhr, Canada’s Secretary of State for Defence Procurement, and Richard Marles, Australia’s Deputy Prime Minister and Defence Minister.
Project Timeline and Operational Targets
BAE Systems Australia is scheduled to begin work on the project on 1 July 2026. According to current plans, the Arctic Over-the-Horizon Radar system is expected to achieve initial operational capability by December 2029.
The multi-year project will involve extensive engineering, infrastructure development, testing, and integration activities. Once operational, the radar network will become a crucial element of Canada’s long-term defence and surveillance architecture.
Economic and Industrial Benefits
Beyond its security significance, the project is expected to generate substantial economic benefits for Canada. Government estimates suggest that the programme will support approximately 2,270 jobs annually between 2026 and 2033.
A comprehensive Industrial and Technological Benefits (ITB) agreement requires BAE Systems Australia to collaborate with Canadian businesses and suppliers throughout the project lifecycle. This partnership aims to strengthen Canada’s domestic defence industry, develop technical expertise, and create opportunities for local manufacturers and technology firms.
The initiative is also expected to contribute to workforce development by creating highly skilled jobs in engineering, construction, technology, and defence-related sectors.
Earlier Developments in the Programme
The A-OTHR initiative has been progressing steadily over the past several years. On 18 March 2025, Canadian Prime Minister Mark Carney announced plans to invest more than $6 billion in the Arctic Over-the-Horizon Radar programme as part of a broader defence modernization effort.
Subsequently, on 20 June 2025, Canada and Australia signed a formal technology partnership arrangement, laying the foundation for deeper cooperation on advanced radar capabilities. The final agreement signed in June 2026 represents the culmination of these efforts and marks the beginning of full-scale implementation.
Why This Development Matters
The Arctic is becoming increasingly important from both economic and strategic perspectives. Growing maritime activity, evolving missile threats, and rising geopolitical competition have underscored the need for enhanced surveillance and early-warning systems.
By acquiring the Arctic Over-the-Horizon Radar, Canada is investing in a proven technology capable of monitoring vast northern regions that are difficult to cover using conventional radar systems. The project not only strengthens national security and NORAD operations but also supports economic growth, technological innovation, and industrial development within Canada.
As construction begins and the project moves toward operational deployment, the A-OTHR system is expected to become a cornerstone of Canada’s Arctic defence strategy for decades to come.
Key Exam Facts
- Canada signed a $2.5 billion A-OTHR agreement with Australia and BAE Systems Australia on 22 June 2026.
- The system uses ionospheric reflection to detect targets beyond the radar horizon.
- The technology is based on Australia’s Jindalee Operational Radar Network (JORN).
- The transmitting station will be located in Kawartha Lakes, Ontario.
- The receiving station will be located in Clearview Township near Wasaga Beach.
- Initial operational capability is expected by December 2029.
- The project is linked to NORAD modernization and Arctic surveillance.
- Around 2,270 jobs are expected to be supported annually in Canada from 2026 to 2033.
Summary
Canada has signed a $2.5 billion agreement with Australia and BAE Systems Australia to acquire an Arctic Over-the-Horizon Radar (A-OTHR) system aimed at enhancing Arctic surveillance and supporting NORAD modernization. Based on Australia’s Jindalee Operational Radar Network (JORN) technology, the radar will detect aircraft and missile threats beyond the conventional horizon using ionospheric reflection. Construction is set to begin in July 2026, with initial operational capability expected by December 2029. The project will strengthen Canada’s defence infrastructure, boost domestic industrial capabilities, and support approximately 2,270 jobs annually between 2026 and 2033.
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