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23. June 2026

Australia and Canada Sign $2.5 Billion Deal for Over the Horizon Radar System
The governments of Australia and Canada have signed an agreement worth $2.5 billion, with the Canadian government agreeing to purchase an Over the Horizon Radar (OTHR) system from Australia. The deal marks Canberra’s largest-ever defense export and is expected to play a crucial role in enhancing the strategic interests of both nations.
A Key Component of Defense Cooperation
The contract reflects the “close and long-standing friendship” between both countries, according to Australian Defense Minister Richard Marles. This agreement not only demonstrates Australia’s ability to export advanced, high-technology defense systems but also safeguards national security while enabling trusted partners to benefit from Australian innovation.
How the OTHR System Works
The OTHR system, known as the Jindalee Operational Radar Network (JORN) in Australia, is a locally developed system that has been in operation since 1990. The system consists of a control center and three separate radar sites throughout Australia, each with transmitter and receiver stations. According to the Australian Defence Science and Technology Group, the JORN works by sending a high-frequency radio signal skywards from a transmitter and refracted down from the ionosphere to illuminate an airborne or seaborne target.
Enhancing Detection and Tracking Capabilities
The acquisition of the OTHR system is expected to play a significant role in enhancing detection and tracking capabilities for North America. The system will support the strategic interests of both nations through enhanced situational awareness, strengthening the Five-Eyes alliance between the US, UK, Canada, Australia, and New Zealand.
BAE Systems Australia’s Role
BAE Systems Australia, the company behind the JORN technology, has been undertaking full lifecycle support of the Australian radar network since it was selected for the program in 2018. The company has also been carrying out upgrades to the system to ensure its continued effectiveness. BAE Systems Australia CEO Craig Lockhart described Canada’s acquisition of the Australian OTHR system as a “significant opportunity” for industry in both countries.
Impact on Canada’s Defense Capabilities
The Canadian government has been seeking to enhance its detection and tracking capabilities, particularly in the wake of increased tensions with China and other regional players. In Canada, the OTHR system will be integrated into the country’s existing radar network, enhancing its ability to detect and track airborne targets.
Deployment Locations
According to sources, the Canadian government is expected to deploy the system at several locations across the country, including at the Royal Canadian Air Force’s (RCAF) radar base in Winnipeg. The acquisition of the OTHR system also marks a significant development for Australia’s defense industry.
A Significant Export for Australian Industry
The deal reflects the country’s ability to export advanced technology systems while safeguarding national security. “This is a great day for Australian industry,” said Defense Minister Richard Marles. “We’re proud of our capabilities and we’re proud to be working with our partners around the world.”
Strong Partnership Between Nations
The Canadian government has also expressed its gratitude for Australia’s contribution to its defense capabilities. “Canada is grateful for the support of Australia in this acquisition,” said a spokesperson for the Canadian Ministry of National Defence. “This agreement demonstrates the strong partnership between our two countries and we look forward to continuing our collaboration on defense matters.”
Next Steps
As Australia continues to grow its defense industry, this deal reflects the country’s commitment to exporting advanced technology systems while safeguarding national security. With Canada set to deploy the OTHR system at several locations across the country, it remains to be seen how this agreement will shape the future of both nations’ defense capabilities.
Conclusion
The signing of the agreement between Australia and Canada marks an important milestone in the country’s defense industry. The acquisition of the OTHR system is expected to play a significant role in enhancing the strategic interests of both nations through enhanced detection and tracking capabilities.