South Korea and Germany are competing for the largest defence contract in Canadian history, but one Indigenous-owned enterprise already has agreements with both.

Carney Dangles C$100 Billion Deal

Prime Minister Mark Carney has turned Canada’s submarine replacement into a geopolitical lever. 

The Canadian Patrol Submarine Project (CPSP) is the largest defence contract currently on the global market. The acquisition of up to 12 submarines is estimated at C$60 billion, but the total cost is expected to exceed C$100 billion when decades of maintenance, repair, and lifecycle support are factored in. 

The deal cements an economic partnership with Canada over the next 75 years, and with billions at stake, South Korea’s Hanwha Ocean and Germany’s ThyssenKrupp Marine Systems (TKMS) are both vying to win. 

South Korea’s Hanwha Ocean is offering the KSS-III, a submarine already in service, promising faster delivery. Germany’s TKMS, backed by Norway, is pitching the Type 212CD with a message of NATO interoperability and deeper European alignment. Both submitted final proposals on 2 March 2026. A decision is expected mid-2026. 

But the most striking detail in this contest is not in either bid document, but the partnership agreements sitting underneath both of them. 

The First Nation That Wins Either Way

When Saskatchewan’s uranium industry began expanding, the community decided their primary responsibility was to the environment and to participation in the industry as owners, not just employees. Des Nedhe, which means “the great river”, was the vehicle for that ambition. With minimal resources and capital at the outset, it started in the mining services sector in 1991 and eventually expanded to construction, property management, retail, renewable energy, and professional services. 

And then came defence. 

In November 2023, Des Nedhe signed a memorandum of understanding with Hanwha Ocean of South Korea, focused on economic sustainability within the Canadian Patrol Submarine Project. This was early in the process, well before the government formally shortlisted bidders in August 2025. 

In May 2025, Des Nedhe launched Des Nedhe Group Defence (DNGD), a dedicated division for Canada’s maritime, aerospace, defence, and security sectors, positioning itself as what it calls a “prime aggregator” for Indigenous participation in major defence programmes. 

On 2 March 2026, the same day both submarine bidders submitted their final proposals,  TKMS signed cooperation agreements with Des Nedhe Group Defence alongside Songhees Development Corporation and Glooscap Ventures, establishing a pan-Canadian framework for Indigenous participation in the submarine programme. 

Des Nedhe did not set out to play both sides—both sides came to them. 

How Des Nedhe Built a Defence Platform Across Four Allied Nations 

The submarine competition is significant, but it’s not the whole story. Des Nedhe is not waiting for Ottawa to choose a winner; it’s building a defence platform designed to outlast the Canadian Patrol Submarine Project entirely. 

At Eurosatory 2026 in Paris, one of the world’s largest defence and security exhibitions, Des Nedhe Group Defence signed a further memorandum of understanding with Sweden’s Actagon AB. 

The agreement, witnessed by Saskatchewan Premier Scott Moe, establishes a framework to explore defence, security, infrastructure, technology, workforce, and investment pathways between Canada and Sweden. Its initial focus is a defence manufacturing and innovation campus in Saskatchewan, anchored by CellCore Technologies’ nitrocellulose production facility. 

A pattern is now emerging across four nations. South Korea came first with the Hanwha Ocean agreement in November 2023, while Germany and Norway followed through TKMS and Team 212CD in March 2026. Sweden then joined through Actagon in June 2026. Beyond the international partnerships, DNGD has also signed a northern security research partnership with the University of Alberta, a digital infrastructure agreement with SaskTel targeting Department of National Defence supply chains, and built a network of more than 20 Indigenous-owned businesses operating under its umbrella. 

Des Nedhe’s track record over the last years tells a deeper story. The First Nation-owned enterprise doesn’t seem intent on targeting one procurement after another; it’s building a sovereign defence industrial capacity that will outlast any contract decision. 

"You cannot move forward, and you cannot protect your culture on government funding alone. You can’t say you are self-determinate if you are getting cheques from Indigenous Services Canada or even philanthropic institutions,” said Sean Willy, Des Nedhe President and CEO. 

Canada’s Pivot from Buyer to Builder

As geopolitical tensions between the US, Iran, China and Russia further add strain to the globe’s already uncertain supply of energy and minerals, Canada is repositioning itself as a strategic partner and reliable alternative supplier of uranium, LNG, and clean energy to countries moving away from Russian and Chinese dependence. 

In June 2025, Canada launched the Critical Minerals Production Alliance during its G7 Presidency at Kananaskis. The first round unlocked C$6.4 billion across 26 projects in nine countries, including Germany, Japan, South Korea and Australia. 

Canada also became the first non-European country to participate in the EU’s SAFE instrument, a €150 billion defence programme supporting joint military procurement. This followed the signing of an EU-Canada Security and Defence Partnership in June 2025. This move enabled Canadian firms to participate in European defence procurement supply chains for the first time. 

Canada reached NATO’s 2 per cent of GDP defence spending benchmark in fiscal 2025–2026, investing more than C$63 billion, its highest level since the end of the Cold War. 

At the NATO Summit in The Hague, Prime Minister Mark Carney committed to raising core defence spending to 3.5 per cent of GDP by 2035, alongside a further 1.5 per cent for defence and security-related investments. 

Ottawa has also launched Canada’s first Defence Industrial Strategy, which aims to reduce reliance on the US by expanding domestic manufacturing capacity and repositioning the country from a buyer to an exporter of advanced military technology. 

Indigenous participation requirements are built into the architecture of this strategy, and Saskatchewan’s uranium deposits–where English River First Nation and Des Nedhe have more than three decades of operational history–are among the highest-grade in the world. 

The Market Signal Beneath the Submarine Race

The Des Nedhe story carries a clear market signal. 

Capital flowing into Canadian defence, critical minerals, and strategic infrastructure will increasingly encounter Indigenous-owned enterprises as essential partners. Des Nedhe Group, with roots in uranium mining, expansion into capital markets through Cedar Leaf Capital, and a defence platform now spanning four countries, is one of the clearest examples of what that looks like at scale, and will unlikely be the last. 

When the submarine decision comes, it will signal which geopolitical alignment Canada has chosen for the next three quarters of a century. The requirement for Indigenous partnership, however, was settled long before either bidder submitted a proposal. 

That part of the architecture remains constant, regardless of who wins. 

Sean Willy, President and CEO of Des Nedhe Group, spoke at the 2025 Canadian Indigenous Investment Forum in London. Cheyenna Hunt, Director of Lands and Consultation at English River First Nation, also spoke at the same event. The 2026 Canadian Indigenous Investment Forum returns to London later this year.  

SOURCES AND VERIFICATION NOTES

² Des Nedhe Group. Des Nedhe Signs MOU with Hanwha Ocean of Korea. November 2023. desnedhe.com

³ TKMS Group. TKMS Signs Two Agreements with Indigenous Partners to Support the Canadian Patrol Submarine Project. 2 March 2026. tkmsgroup.com

⁴ Canadian Defence Review. Des Nedhe Group Defence and Actagon AB Sign Canada-Sweden MOU. June 2026. canadiandefencereview.com

⁵ Des Nedhe Group. Introducing DNGD: Des Nedhe’s New Defence Division. May 2025. desnedhe.com 

⁶ Des Nedhe Group. Cedar Leaf Capital Receives Regulatory Approval. October 2024. desnedhe.com

⁷ Government of Canada. Critical Minerals Strategic Partnerships. canada.ca

⁸ European Council. SAFE: Member States Endorse Agreement on the Participation of Canada. 19 December 2025. consilium.europa.eu 

⁹ Government of Canada. Canada Achieves the 2% of GDP Defence Spending Benchmark. 26 March 2026. canada.ca 

¹⁰ Prime Minister of Canada. Canada’s First Defence Industrial Strategy. 17 February 2026. pm.gc.ca 

¹¹ Globe and Mail. Scotiabank Partnership Will Create First Indigenous-Owned Investment Dealer in Canada. 23 February 2024. theglobeandmail.com