The Canadian government has finalized a $2.5 billion procurement agreement with Australia and BAE Systems Australia to acquire hardware and signal processing technology for the Arctic Over-the-Horizon Radar program.
Managed by the newly independent Defence Investment Agency, the deal moves the project into the hardware delivery phase. BAE Systems Australia is scheduled to begin engineering work on July 1, 2026, with the Department of National Defence targeting an initial operational capability by December 2029.
Unlike conventional line-of-sight sensors limited by the curvature of the Earth, over-the-horizon systems transmit high-frequency radio waves into the upper atmosphere. These signals refract off the ionosphere and bounce downward to illuminate targets thousands of kilometres away. The returning signals reflect off the ionosphere a second time to reach the receiver arrays. This physical mechanism allows operators to track low-flying cruise missiles and emerging hypersonic threats long before they enter North American airspace. The architecture requires immense computational power to filter background noise and interpret the returning high-frequency data.
This procurement includes a direct technology transfer of the phased-array designs and software utilized in Australia’s Jindalee Operational Radar Network. It builds upon a preliminary partnership arrangement announced in 2025. By executing a government-to-government transaction through the Defence Investment Agency, the military is bypassing traditional development bottlenecks to adopt a mature technological baseline.
“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,” said Stephen Fuhr, Canada’s secretary of state for defence procurement.
The finalized contract mandates that BAE Systems Australia integrate domestic companies into the supply chain to build sovereign expertise in operating and sustaining the radar architecture.
Richard Marles, Australia’s deputy prime minister and minister for defence, noted the agreement highlights the transferability of the system hardware. “This arrangement demonstrates Australia’s ability to export advanced, high-technology defence systems while safeguarding our national security, and enabling trusted partners to benefit from Australian innovation,” Marles said.
The technology acquisition falls under the broader $6 billion Arctic Over-the-Horizon Radar initiative designed to weave early warning capabilities into the modernized NORAD network. Previous SpaceQ coverage highlighted that the military intends to build a permanent transmit site north of Kawartha Lakes and a preliminary receive site in Clearview Township. Canadian engineers will now work alongside their Australian counterparts to harden the imported electronic components, ensuring the sensitive transmitter and receiver arrays can withstand the severe environmental rigours of the Arctic.