$2.5 Billion Contract for Canada's Arctic Over-The-Horizon Radar (OTHR) Marks Australia's Largest Ever Defence Export

24 Juni 2026

Artist impression of Arctic over-the-horizon radar (image: BAESystems)

The Australian and Canadian governments have announced an export agreement of Australia’s High Frequency Surveillance capability system to establish an Arctic over-the-horizon radar (A-OTHR) in Canada.

Under the agreement, which will be Australia’s largest ever defence export, BAE Systems Australia will support both governments as the A-OTHR industry partner. 

The Australian solution for A-OTHR is built on a mature, high-performance OTHR capability that delivers enhanced detection and tracking of threats to security, building on more than 40 years of expertise and innovation. 

An OTHR capability works by refracting high-frequency electromagnetic waves off the ionosphere to 'see' objects thousands of kilometres away that are invisible to conventional radars because of the curvature of the earth.

BAE Systems Australia has demonstrated experience in the full lifecycle support of complex OTHR capabilities, including the Jindalee Operational Radar Network (JORN), which plays a vital role in supporting the Australian Defence Force (ADF), border protection, disaster relief and rescue operations.

BAE Systems Australia stands ready to support the rapid delivery of operational capability to Canada with an experienced workforce in the installation, operation, upgrade and sustainment of complex OTHR systems.

The agreement enables deeper collaboration on OTHR capability development between Australia and Canada to meet emerging threats. BAE Systems Australia will continue to support both nations as it progresses.

Craig Lockhart, Chief Executive Officer, BAE Systems Australia:

"The export of Australian OTHR capability presents a significant opportunity for both Australian and Canadian industry and positions domestic firms to expand exports of high-value goods and services, particularly into allied defence and technology markets. 

Canada’s acquisition of a cutting-edge Australian OTHR system supports the strategic interests of both nations through enhanced detection and tracking of threats to North America, strengthening Five-Eyes situational awareness."

(Aus DoD)