Canada has narrowed the competition for its next generation of submarines to two shipbuilders—Germany’s ThyssenKrupp Marine Systems, working with Norway, and South Korea’s Hanwha Ocean—Prime Minister Mark Carney announced at a joint news conference in Berlin with Chancellor Friedrich Merz. The Canadian Patrol Submarine Project aims to acquire up to 12 conventionally powered boats to replace the Royal Canadian Navy’s four Victoria-class submarines, which are expected to remain in service into the mid-2030s. Public Services and Procurement Canada said the first new vessel is scheduled for delivery by 2035. Ottawa will now conduct in-depth talks with both finalists on technical specifications, economic benefits and potential maintenance work in Canada. Carney is visiting TKMS’s Kiel yard this week and plans to travel to Hanwha’s facilities in South Korea in October. The government has not disclosed a budget but has linked the program to its broader effort to raise defence spending to meet NATO targets and strengthen supply chains with allied nations.