Air Defense European Defense Industry World

Canada and Australia Sign $2.5 Billion Arctic Over-the-Horizon Radar Deal

Bottom line: Canada and Australia have signed a $2.5 billion over-the-horizon radar (OTHR) deal to monitor Arctic air and missile threats. BAE Systems is the industry partner, and the deal is described as Australia’s largest-ever defence export.

Canada and Australia have signed a $2.5 billion over-the-horizon radar (OTHR) agreement for Arctic surveillance. According to Defence Industry Europe and The Defense Post, the deal — with BAE Systems as industry partner — is billed as Australia’s largest-ever defence export.

At a Glance

System	Over-the-horizon radar (OTHR)
Parties	Canada (buyer) and Australia
Industry partner	BAE Systems
Value	$2.5 billion
Purpose	Arctic air and missile early warning
Date	23 June 2026

OTHR and Arctic Defence

Over-the-horizon radar uses shortwaves refracted by the ionosphere to detect air targets thousands of kilometres beyond the Earth’s curvature. Australia is a leading operator through JORN, the Jindalee Operational Radar Network.

Canada aims to strengthen surveillance of its northern approaches amid growing Russian and Chinese activity in a warming Arctic. The deal fits NORAD modernisation and polar-security frameworks.

Early-warning radar array. Representative image. Source: Wikimedia Commons.

Australia’s Largest Export

At $2.5 billion, the deal is the largest export in Australia’s defence-industrial history, with BAE Systems supporting the radar infrastructure. The OTHR network will continuously monitor a vast area, providing early warning against aircraft, missiles and other air targets.

By covering enormous airspace from fixed ground stations — without satellites or airborne platforms — OTHR offers a strategic advantage in cost and persistence.

Why It Matters for Turkey

Early-warning and long-range radar is the first link of layered air defence. Led by ASELSAN, Turkey develops long-range early-warning and multifunction radars (KALKAN, İHTAR and long-range warning radars) domestically, forming the sensor layer of the Steel Dome.

Indigenous radar means building the air picture without external dependency. ASELSAN’s growth in radar exports shows Turkey not only meets its own needs but competes internationally in this critical field.

Frequently Asked Questions

What is over-the-horizon radar?
An early-warning radar that uses ionospheric refraction to detect targets thousands of kilometres beyond the horizon.

Why does the deal matter?
At $2.5 billion it is Australia’s largest defence export and closes Canada’s Arctic surveillance gap.

Where does Turkey stand on radar?
ASELSAN builds and exports long-range early-warning and multifunction radars.

Bottom Line

The Canada-Australia OTHR deal underscores the strategic value of early-warning radar and its export potential. Turkey strengthens its independent air picture by developing the same critical technology domestically through ASELSAN.