Canada signs $2.5 billion deal for Australian radar to strengthen Arctic surveillance.

Canada has signed a $2.5-billion deal with Australia and BAE Systems Australia to buy an Arctic Over-the-Horizon Radar system. The agreement was signed in Canberra and gives Canada a powerful new tool to detect aircraft and missiles flying through the Far North, according to CBC. The system is expected to be operational by 2029.
The radar works by bouncing high-frequency radio waves off the ionosphere — the upper atmosphere — to see threats up to 3,000 km away, far beyond what standard radar can detect. The deal is part of a broader $4.9-billion NORAD modernization effort. It is projected to create 2,270 jobs per year between 2026 and 2033, The Canadian Press reported.
Canada's current radar system, the North Warning System, was built in the late 1980s. It can only see in a straight line — meaning low-flying cruise missiles can hide behind the Earth's curve. That gap has grown more dangerous as Russia and China develop faster, harder-to-detect weapons, according to Winnipeg Free Press.
The new system will fix that. Over-the-horizon radar bounces signals off the atmosphere to spot threats that older radar simply cannot see. Canada's Defense Minister called the Arctic "a primary theater of interest" — no longer a buffer zone. General Gregory Guillot, the NORAD commander, has called the A-OTHR "the missing piece" in North American air defense.
Canada chose BAE Systems Australia as its partner because of the company's 35-year track record running Australia's Jindalee Operational Radar Network, known as JORN. JORN is the most advanced over-the-horizon radar system in the world, covering air and sea movements across Australia's vast northern approaches, Richmond News reported.
Rather than spend years building a system from scratch, Canada is buying proven technology from a Commonwealth ally. BAE CEO Ben Hudson said the company will adapt the system for the "extreme electromagnetic environment" of the Aurora Borealis — a real engineering challenge that Australia's desert-based radar never had to solve. Some military analysts question whether the system can cut through that interference effectively.
The deal delivers a significant economic boost. Canada expects 2,270 jobs per year through 2033. Most high-tech engineering work will be based in Ontario and Quebec. Construction and maintenance roles will go to workers in remote regions, Brandon Sun reported. Defense analyst Dr. James Fergusson called the $2.5-billion price tag "cheaper than developing a sovereign system from scratch."
The radar needs two huge antenna arrays — a transmitter and a receiver — placed roughly 100 km apart. That physical footprint raises concerns. The Inuit Circumpolar Council has flagged worries about land use and the effect of high-frequency signals on wildlife migration. Indigenous consultation before the Canberra signing has been questioned by environmental groups.
Not everyone is satisfied. Conservative Shadow Minister for National Defence James Bezan called the 2029 operational date "dangerously late," pointing to the speed of Russian Arctic expansion. Construction starts this year, with land permits for sites in Southern Ontario under final review, according to Airdrie City View.
Some critics at the Rideau Institute argue the system signals a return to Cold War thinking that could push Russia to further militarize its own Arctic coastline. Supporters counter that owning its own radar data gives Canada a more independent voice inside the NORAD partnership — reducing reliance on U.S. satellite surveillance.
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