Hanwha signs multiple MoUs to support its Canadian Patrol Submarine Project pitch

South Korea’s Hanwha has further expanded its industrial partnerships in Canada, announcing a series of strategic memoranda of understanding (MoUs) spanning steel, space, artificial intelligence (AI) and advanced technologies in support of the Canadian Patrol Submarine Project (CPSP) and other programmes, Hanwha announced on 26 January 2026.

On the sidelines of a visit to Toronto by a South Korean government and business delegation for industrial co-operation and investment discussions with Canadian companies, MoUs were signed with Algoma Steel, Telesat, MDA Space, Cohere, and PV Labs. This allows Hanwha to establish what it calls “a cross-sector industrial co-operation framework in support of the Canadian Patrol Submarine Project” and highlight’s Hanwha’s “long-term commitment to working with Canadian industry to support job creation, industrial development, as well as strengthening Canada’s sovereign defence, security and industrial capabilities, in line with nation-building priorities”, the company added.

South Korea views the CPSP as an opportunity to elevate its relationship with Canada into a durable, whole-of-government strategic partnership spanning defence, industry, technology and security co-operation.

“This approach is fully aligned with the Canada–Korea Free Trade Agreement, the Comprehensive Strategic Partnership, the Security and Defence Cooperation Partnership, and Canada’s Indo-Pacific Strategy,” Hanwha noted.

Hanwha Ocean is pitching its KSS-III design for the CPSP as “a proven, in-service, in-active-production submarine that fully meets and exceeds all [CPSP] requirements”. A key feature of Hanwha Ocean’s CPSP pitch is a fast delivery schedule: the company asserts that it can deliver four KSS-III submarines to fully replace Canada’s current Victoria-class fleet before 2035 if on contract in 2026. The programme’s additional eight submarines would be delivered at a rate of one per year, meaning the entire fleet of 12 submarines will be delivered to Canada by 2043.

The specifics of the MoUs are as follows:

• Hanwha Ocean and Algoma Steel have entered into a binding MoU to establish a long-term strategic arrangement to support the revitalisation of Canada’s steel sector. Under the MoU Hanwha Ocean is to provide Algoma with an aggregate potential value of up to CAD 345 million (EUR 212 million), comprising support for the development of a new structural steel beam mill in Canada, as well as anticipated purchases of steel products for use in CPSP-related submarine construction and associated maintenance, repair, and overhaul (MRO) infrastructure in Nova Scotia and British Columbia, where the submarine fleet will be fully supported throughout its lifecycle.
• Hanwha Systems and Telesat have entered into an MoU to collaborate on next-generation sovereign satellite connectivity solutions and user terminals compatible with Telesat’s low Earth orbit (LEO) network: Telesat Lightspeed. Under the MoU, which focuses on secure, high-capacity, and resilient satellite communications applicable to defence, maritime and advanced naval platforms, Hanwha and Telesat will explore co-operation related to South Korea’s LEO communications satellite constellation (K-LEO) and defence user terminals compatible with both K-LEO and Telesat Lightspeed.
• Hanwha Systems and MDA Space have entered into an MoU to explore collaboration on advanced satellite technologies, including secure LEO communications, aligned with sovereign defence and security requirements. The partnership brings together MDA Space’s next-generation AURORA software-defined satellite platform and Hanwha Systems’ expertise in defence electronics and space systems.
• Hanwha Ocean, Hanwha Systems, and Cohere have entered into an MoU to explore collaboration on advanced AI technologies in support of the CPSP. The partnership focuses on the joint development of AI models – including large language and multimodal models – to enhance submarine operations and shipyard efficiency, leveraging Hanwha Ocean’s domain expertise, Hanwha Systems’ defence integration capabilities and Cohere’s secure enterprise AI technologies.
• Hanwha Systems and PV Labs have entered into an MoU to jointly develop advanced capabilities for tactical electro-optical/infra-red (EO/IR) systems. Under the MoU the two companies will collaborate to enhance EO/IR sensor capabilities for broader security applications.