Australia has signed a $2.5 billion over-the-horizon radar (OTHR) deal with Canada, marking the largest defense export agreement in Australian history. This deal signals a strategic shift in how Australia leverages its domestic technological innovations on the global stage. The deal focuses on exporting advanced long-range surveillance capabilities to help Canada monitor its expansive and strategically critical Arctic region.
The agreement was formally signed in Canberra on Monday, June 22, 2026. It represents the first time Australia has sold its world-leading over-the-horizon radar technology internationally. Prime Minister Anthony Albanese highlighted the achievement as a major demonstration of Australian innovation, noting that the deal not only provides a significant economic boost but also strengthens the long-standing military and intelligence ties between the two Five Eyes partners.
Understanding Over-the-Horizon Radar (OTHR) Technology
To understand the significance of this deal, one must look at the technical capabilities of the Over-the-Horizon Radar (OTHR). Conventional radar systems are limited by the curvature of the Earth, meaning they can only detect objects within a direct line of sight. This “horizon” limit makes it difficult to track low-flying aircraft or ships at extreme distances.
What Is Over-the-Horizon Radar (OTHR)?
Over-the-Horizon Radar (OTHR) is a long-range radar technology that can detect and track aircraft, ships, and other objects far beyond the normal line-of-sight limit of conventional radars.
How Does OTHR Detect Aircraft?
Instead of relying on direct radar beams, OTHR transmits high-frequency radio waves toward the ionosphere, a layer of the Earth’s upper atmosphere. The ionosphere reflects these waves back toward the Earth’s surface, allowing the radar to monitor targets up to about 3,000 kilometers away, even beyond the Earth’s curvature.
This technology is based on the proven success of the Jindalee Operational Radar Network (JORN), which has operated for 40 years to protect Australia’s northern approaches via facilities in Queensland, the Northern Territory, and Western Australia. Canada is now modelling its own Arctic Over-the-Horizon Radar (A-OTHR) capability on this successful Australian framework.
Strategic Importance of Arctic Surveillance for Canada
For Canada, the acquisition of this technology is a critical component of national security.
- The Arctic region covers roughly 40 percent of Canada’s landmass but remains sparsely populated with minimal infrastructure.
- In recent years, the region has seen increased military activity from Russia and other global powers, coupled with melting ice that is opening new commercial shipping routes.
How Will the OTHR System Help Canada Monitor the Arctic?
The OTHR system will allow Canadian authorities to maintain a persistent surveillance posture over the Arctic, enhancing their ability to detect and respond to maritime and military activity.
- Canadian officials have indicated that the radar will be integrated into a wider network of communications and surveillance systems, contributing directly to the modernization of NORAD (the North American Aerospace Defense Command), the joint aerospace defense command operated by Canada and the United States.
Stephen Fuhr, Canada’s Secretary of State for Defence Procurement, emphasized that the deal reflects a desire to broaden Canada’s defense partnerships. He noted that as the world adjusts to new strategic and economic realities, Australia is an ideal partner for deeper cooperation in security, artificial intelligence, energy, and critical minerals.
Economic Impact and the Role of BAE Systems Australia
The financial and industrial implications for Australia are substantial. The $2.5 billion agreement is expected to support approximately 300 highly specialized technical jobs across the national defense supply chain. BAE Systems Australia has been appointed as the principal industrial partner and is scheduled to begin delivery of the Canadian capability on July 1, 2026.
Minister for Defence Industry Pat Conroy described the JORN system as a “great Aussie success story,” transforming decades of scientific research into a massive commercial opportunity. Beyond the immediate export revenue, Defence Minister Richard Marles pointed out that the partnership allows for shared expertise.
Both nations will engage in joint research and development to adapt the radar technology to the unique geographic and atmospheric conditions of the Arctic.
Broadening Defense Ties: The Ghost Bat Drone and Future Exports
While the radar deal is the centerpiece of the current diplomatic visit, other defense technologies are also under scrutiny.
Canada’s Stephen Fuhr has expressed significant interest in the Ghost Bat, a collaborative combat aircraft (uncrewed aerial vehicle) developed by Australia. Designed to operate alongside fifth-generation fighters like the F-35, the Ghost Bat is used for intelligence and reconnaissance with a range of about 3,700km, though it possesses the capability to carry weapons.
The interest from Canada and Germany in the Ghost Bat suggests that Australia is successfully transitioning from being primarily an importer of military systems to a sophisticated exporter of high-tech defense solutions.
Minister Marles indicated that Australia remains open to exploring further export opportunities for its radar technology with other trusted partners, including the United States, provided national security sensitivities are managed.
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A New Era of Australia-Canada Collaboration
The $2.5 billion agreement is explicitly described as the first stage of a broader strategic partnership. Canada has provisioned a total of $6.5 billion for the overall project, leaving room for the network to be expanded in the coming years.
This collaboration extends beyond hardware. It establishes a framework for the interoperability of armed forces and the deepening of industrial ties between Canberra and Ottawa.
By sharing the evolution of OTHR technology, both nations aim to enhance their respective domain awareness—Australia in the Indo-Pacific and Canada in the Arctic—ensuring that both remain resilient in an increasingly complex global security environment.
Frequently Asked Questions
What is over-the-horizon radar (OTHR)?
Over-the-Horizon Radar (OTHR) is a long-range surveillance technology that uses high-frequency radio waves reflected by the ionosphere to detect aircraft and ships up to 3,000 kilometers away, beyond the limits of traditional radar systems.
How much is the Australia-Canada radar deal worth?
The initial agreement signed is worth $2.5 billion, making it the largest defense export deal in Australian history. However, Canada has provisioned a total of $6.5 billion for the broader project.
Why does Canada need this radar in the Arctic?
Canada requires advanced surveillance to monitor the Arctic due to increasing military activity by foreign powers, the opening of new shipping routes caused by melting ice, and the need to modernize NORAD’s aerospace defense capabilities.
Which company is leading the industrial delivery of the project?
BAE Systems Australia is the principal industrial partner responsible for the delivery of the radar capability, with work scheduled to commence on July 1, 2026.
What other technology is Canada interested in from Australia?
In addition to the radar system, Canada has shown interest in the Ghost Bat, an advanced uncrewed aerial vehicle (drone) designed for reconnaissance and collaborative combat operations alongside fighter jets.
What is JORN?
The Jindalee Operational Radar Network (JORN) is Australia’s long-range over-the-horizon radar system that monitors air and maritime activity across the country’s northern approaches. It serves as the model for Canada’s new Arctic OTHR system.
News Sources – AsiaPacificDefenceReporter, ABC News, Allora News
