February 17, 2026 • Canada
CANADIAN DEFENCE - Carney Unveils Half-Trillion Dollar Defence Plan to Build, Partner and Buy, Slashing Reliance on Foreign Suppliers - Infograph
In a landmark shift, Prime Minister Mark Carney launches Canada's first Defence Industrial Strategy, a half-trillion dollar investment prioritizing Canadian companies to 'Build, Partner, Buy'—aiming to create 125,000 jobs and hit NATO spending targets.
📝 SMikhail
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$580 Billion+
Total Investment
Combined procurement ($180B), capital investment ($290B), and downstream economic benefit ($125B) over the next decade
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70%
Buy Canadian Target
Share of defence acquisitions to be awarded to Canadian firms
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125,000
New Careers
High-paying jobs created across the defence supply chain
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240%
Revenue Growth
Projected increase in Canadian defence industry revenues
- BUILD: Prioritise Canadian firms and Canadian manufacturing as a matter of policy in areas of homegrown strength (shipbuilding, aerospace, land systems, digital technologies).
- PARTNER: Where domestic capability is lacking, work jointly with trusted allies to deliver capabilities for the Canadian Armed Forces.
- BUY: When building or partnering is not feasible, purchase from allies with strict conditions ensuring reinvestment into the Canadian economy and sovereign control over operations.
- The 'Buy Canadian' approach is positioned as the 'North Star' to reduce foreign overreliance and foster national champions.
- A new standalone entity being established to overhaul and streamline Canada's defence procurement.
- Mandated to cut red tape, speed up delivery, and equip the CAF with what it needs, when it needs it.
- Will prioritise manufacturing and strategic partnerships with Canadian firms, including small and medium-sized businesses.
- Legislation to make the DIA a standalone entity is planned for spring 2026, serving as the single point of contact for defence investment.
- A new $4 billion Defence Platform at the Business Development Bank of Canada to provide capital to defence companies.
- $379.2 million Regional Defence Investment Initiative to integrate SMEs into defence supply chains.
- $656.9 million for defence and dual-use tech commercialisation, including through the Strategic Response Fund.
- Creation of a Drone Innovation Hub ($105M) and a new aircraft research platform ($459M) at the National Research Council.
- Establishment of BOREALIS (Bureau of Research, Engineering and Advanced Leadership in Innovation and Science) to coordinate frontier tech research.
- New trade commissioners in the UK and key EU markets to boost Canadian defence exports by 50%.
- Launch of the Canadian Defence Industry Resilience Program to increase production capacity and begin domestic production of nitrocellulose, a critical material for artillery.
- Introduction of a Canada Defence Skills Agenda to build the future defence workforce, focusing on talent pipelines and partnerships with provinces, territories, and Indigenous rights holders.
- Focus on critical minerals projects to develop reliable, secure supply chains aligned with national defence needs.
- Maritime fleet serviceability to be raised to 75% within a decade.
- Land fleets to achieve 80% serviceability.
- Aerospace fleets to reach 85% serviceability, bolstering Canadian defence capabilities.
KEY QUOTES
"The work of defending Canada is the work of building Canada. Security and prosperity are mutually reinforcing foundations of the true North, strong and free." - The Rt. Hon. Mark Carney, Prime Minister of Canada
"This is the time to be ambitious. By investing in Canada's future, we are strengthening the Canadian Armed Forces' ability to defend, deter, and defeat threats to Canada and Canadians." - The Hon. David J. McGuinty, Minister of National Defence
"Buy Canadian will be the North Star toward a new way of doing business in defence acquisitions." - From the Strategy document
"This is an ambitious, landmark strategy that shows real leadership at a time of profound uncertainty and change." - Christyn Cianfarani, President and CEO, Canadian Association of Defence and Security Industries (CADSI)
"With the launch of this strategy and the Defence Investment Agency, we are delivering the capabilities the Canadian Armed Forces need, when they need them, while growing Canada's economy." - The Hon. Stephen Fuhr, Secretary of State (Defence Procurement)
Mark Carney
Defence Industrial Strategy
Canada defence
Build Partner Buy
Defence Investment Agency
DIA
Canadian Armed Forces
CAF
NATO 2%
defence procurement
Canadian sovereignty
Arctic security
defence innovation
dual-use technology
defence jobs
Canadian defence industry
shipbuilding
aerospace
critical minerals
nitrocellulose
BOREALIS
CADSI
David McGuinty
Mélanie Joly
Stephen Fuhr