OTTAWA — Canada and Australia have agreed on terms to allow Ottawa to buy components of the Arctic over-the-horizon radar system from BAE Systems Australia.

Stephen Fuhr, Canada’s secretary of state for defence procurement, was in Canberra on Sunday to make the announcement with Australian Defence Minister Richard Marles.

Canada has committed to spend more than $6 billion developing the new radar system in the Far North, which is set to begin operation in December 2029.

The radar system will give Canada the ability to detect threats in the air and on the ocean, and provide early-warning tracking throughout the North.

BAE Systems is one of the companies that built an over-the-horizon radar system in Australia. Fuhr’s office said BAE Systems will work with Canadian companies to develop the Canadian system.

Work on the new capability is set to begin on July 1, Fuhr’s office said, calling the agreement the beginning of the delivery phase for the radar project.

The Canadian government is committed to spending $2.5 billion on the capability through this deal with Australia.

The radar system will be located in Southern Ontario, at two transmission sites and two receiving sites.

The Department of National Defence bought land near Barrie and Kawartha Lakes for the initial sites, which sparked controversy and petitions from landowners in the area.

In May, Defence Minister David McGuinty’s office wrote in a response to questions from a member of Parliament that the location requirements for the project were inflexible and that the sites were chosen after assessing hundreds of options.

Over-the-horizon radar is expected to be fully operational in 2043.

It is considered a key component of the Norad modernization program, announced in 2022, which is expected to cost $38.6 billion over 20 years.

This report by The Canadian Press was first published June 21, 2026.

Canadian Press Staff, The Canadian Press