Australia has finalised its largest-ever defence export deal, announcing a $2.5 billion agreement to deliver an advanced over-the-horizon radar (OTHR) capability to Canada.

The government-to-government arrangement will see Australia’s high-frequency surveillance technology – originally developed by the Defence Science and Technology Group in Adelaide – deployed to establish an Arctic over-the-horizon radar (A-OTHR) system, enhancing Canada’s ability to detect and track threats across vast distances.

With demonstrated experience in the full lifecycle support of OTHR capabilities, including the Jindalee Operational Radar Network (JORN), BAE Systems Australia will serve as the primary industry partner for both governments, supporting the delivery, integration and sustainment of the capability. Work on the project is scheduled to commence on 1 July 2026.

BAE Systems Australia Chief Executive Officer Craig Lockhart said the agreement highlights the export potential of Australia’s advanced defence capabilities.

“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,” Mr Lockhart said.

“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.”

Australia’s OTHR capability is built on more than 40 years of local expertise and innovation, to support delivery of an A-OTHR solution for enhanced detection and tracking of threats to security. The system enables long-range surveillance by refracting high-frequency electromagnetic waves off the ionosphere to detect objects thousands of kilometres beyond the horizon that are invisible to conventional radars.

The project is expected to support around 300 highly skilled technical jobs in Australia. It will support strong collaboration between Australia and Canada, combining Australia’s recognised leadership in OTHR technology with Canada’s expertise in Arctic defence and long-range domain awareness.

Minister for Defence Industry Pat Conroy described the agreement as a landmark export that showcases Australia’s world-leading capability.

“The Jindalee Operational Radar Network is a great Aussie success story – world-leading technology that has led to the biggest defence export agreement in Australia’s history,” Minister Conroy said.

“The arrangement represents a powerful example of how defence exports support economic growth, build high-technology capability, and strengthen national resilience.

This is the first international sale of Australia’s world-leading OTHR technology and marks the first stage of a broader Australia–Canada collaboration to enhance interoperability between the countries and establish a framework for ongoing collaboration in joint research and development to advance OTHR capabilities for mutual benefit.