Advanced Satellite Contract
Canadian Space Agency Awards MDA Space $688M Contract for New SAR Satellite to Enhance RADARSAT Mission
Canada's space agency has signed a $688 million contract with MDA Space Ltd. to build a new radar satellite, the largest single satellite deal in the company's history. The satellite will join the existing RADARSAT Constellation Mission (RCM) fleet and is set to launch late in 2026 on a SpaceX Falcon 9 rocket, according to Financial Post.
The deal follows an initial $44.7 million contract awarded in December 2025 to buy long-lead parts and get construction started early. The full $688 million contract will be added to MDA's backlog — now worth more than $3.7 billion — in the second quarter of fiscal 2026, Calgary Herald reported.
What the New Satellite Will Actually Do
The new satellite uses MDA's CHORUS™ platform — the company's fourth-generation Earth observation technology. CHORUS can capture images at sub-meter resolution. That is far sharper than the 3–5 meters typical of the current RCM satellites. It can also scan a swath up to 700 kilometers wide in a single pass, according to Calgary Sun.
SAR stands for synthetic aperture radar. Unlike a regular camera, SAR can see through clouds, smoke, and total darkness. That matters enormously in Canada's Arctic, where skies are often overcast and winter brings months of darkness. The new satellite will help track ships in the Northwest Passage — including "dark vessels" that switch off their transponders to avoid detection.
A $1 Billion Push to Protect Canada's Eyes in Space
This contract is part of a larger government program called RADARSAT+, a 15-year, $1.012 billion investment announced in October 2023. The goal is to keep Canada's radar imaging capability running without a gap as the 2019 RCM satellites age. Rather than build an older-style copy, Ottawa chose to use MDA's newer commercial CHORUS design, giving the government access to better technology at lower cost, Stratford Beacon Herald reported.
The contract also includes upgrades to ground control, security systems, and data management. In June 2026, the CSA separately awarded $2.4 million in concept-study contracts to Calian, Kepler, and MDA Space to help design those ground systems.
Jobs, Manufacturing, and Canada's Aerospace Ambitions
MDA opened a new 185,000-square-foot satellite manufacturing facility in Montréal in May 2026. That site will be where the new satellite is assembled, tested, and prepared for launch. Industry Minister Mélanie Joly said the investment means "good jobs for Canadians, a stronger, more sovereign economy, and growing our world-class advanced manufacturing capacity."
MDA CEO Mike Greenley said the company's commercial investment in CHORUS means Canadians will benefit from "world-leading technologies developed right here in Canada to meet vital needs." The project supports high-tech jobs in both Montréal and Richmond, B.C., where MDA runs its software and ground systems operations, according to The Observer.
Arctic Security Drives the Urgency Behind the Deal
Defense experts say this contract is less about science and more about Arctic sovereignty. Russia and China have both increased activity in the North. Canada needs its own radar eyes in orbit to monitor that activity independently — without relying on allies. Sovereign SAR imagery is seen as a core tool for enforcing maritime law and tracking foreign vessels, Pembroke Observer reported.
Not everyone is fully on board. Some researchers have raised concerns about mixing national security data with a commercial satellite platform like CHORUS. There are also questions from Indigenous communities — including Inuit, Cree, and Anishinaabe groups — who argue that growing satellite constellations interfere with star-based navigation and spiritual practices. They are calling for "dark sky" impact studies before future launches proceed.
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