SYDNEY — Australia announced Monday that it has reached its biggest defense export agreement in history, agreeing to sell cutting-edge radar technology to Canada in a deal worth A$2.5 billion, or roughly $1.75 billion U.S. dollars.
The technology at the center of the deal is known as Over-the-Horizon Radar, which is capable of detecting and tracking aircraft, ships, and missiles at distances of up to 3,000 kilometers — approximately 1,864 miles. This marks the first time Australia has sold this particular radar system to another country.
Canada plans to use the technology to strengthen its ability to monitor the Arctic, a region that makes up roughly 40% of the country’s total landmass. Despite its enormous size, the Canadian Arctic remains sparsely populated and largely undeveloped. A significant portion of Russia’s Arctic territory — about one-fifth of its total land area — faces both Canada and the U.S. state of Alaska.
Australian Prime Minister Anthony Albanese highlighted the significance of the agreement. “Today’s agreement marks a significant milestone in Australian defence trade and lays the foundation for deeper and mutually beneficial defence industry collaboration with Canada,” he said in a written statement.
Canadian officials also weighed in on the importance of the project. Stephen Fuhr, Canada’s secretary of state for defence procurement, described the deal as part of a larger initiative. “Canada is reinforcing Arctic security through the Arctic Over-the-Horizon Radar project,” Fuhr said. “This project is part of a broader effort to build an integrated Arctic surveillance and communications network that will strengthen Canada’s ability to monitor, understand and respond to activity in the Arctic.”
Australia noted that the agreement will create around 300 jobs domestically and represents only the first phase of what is expected to be a broader, ongoing collaboration between the two nations on radar development.
