Australia has formalized a landmark agreement with Canada to provide state-of-the-art radar capabilities for the Arctic, strengthening continental defense and bolstering the North American Aerospace Defense Command (NORAD). In June 2026, the allies signed a pact that ensures delivery of an Arctic over-the-horizon-radar (A-OTHR) system to Canada. It is expected to be operational by December 2029. The cost of the $4.2 billion system, which includes related infrastructure and logistics, represents a major downpayment in Canada’s commitment to contribute to NORAD’s modernization.
A-OTHR will give Canada long-surveillance capability to detect and track airborne threats approaching North America through the Arctic. The value of the system, which uses the ionosphere to see beyond Earth’s curvature, lies in its ability to detect objects at much greater range than traditional radar. “This makes it a critical capability for monitoring Canada’s vast northern and Arctic approaches, providing earlier warning of potential threats,” stated a Canadian Department of National Defence news release issued shortly after the June 22 signing ceremony in Canberra, Australia.
The acquisition of the A-OTHR system is a major part of a substantial NORAD modernization package that Ottawa announced in 2022 that involves $27.2 billion in spending over 20 years. The system will be deployed in southern Ontario, the government said.
The ionosphere is between 50 to 1,000 kilometers above Earth’s surface that is electrified by solar radiation and strips electrons away from gases. That ionization process creates currents of charged particles that convey radio waves over much longer distances than what is possible closer to Earth. “Once operational, A-OTHR will enhance Canada’s domain awareness, improve decision-making timelines, and support the Canadian Armed Forces and NORAD in detecting, deterring, and responding to threats before they reach Canadian or North American airspace,” the release stated.
The acquisition arrangement establishes the framework for collaboration between the governments and enables Canada’s procurement of Australia’s proven OTHR capability. BAE Systems Australia began manufacturing the system July 1, according to the release. “Through this partnership, Canada will leverage Australia’s proven technology and expertise to accelerate delivery of A-OTHR while reducing technical risk,” the release stated. “This partnership reflects the close ties between Australia and Canada and demonstrates a shared commitment to deepening our defence relationship by advancing defence innovation, strengthening early warning capabilities, and supporting collective security.”
Canadian Prime Minister Mark Carney announced a raft of measures in March 2025 to bolster the country’s defense posture in the High North. In addition to the A-OTHR acquisition, Canada plans to augment Arctic military bases to allow for a year-round presence in remote regions. Local communities also will benefit by infrastructure improvements, including upgrading aging diesel power plants and building housing to increase population density.
“Canada is, and forever will be, an Arctic nation, and we can never take our sovereignty and security in the region for granted. Our government will strengthen Canada’s Arctic security, bolster partnerships with our closest Allies, unleash the North’s economic potential, and reaffirm reconciliation with Indigenous Peoples. Canada will remain a strong, secure, and sovereign nation,” Carney said at the time.