How Hanwha’s expanding Canadian alliance is linking steel, space, AI, and advanced sensors to anchor sovereign capability under the Canadian Patrol Submarine Project
On the sidelines of a high-level South Korean government and business delegation visit to Toronto, Hanwha Group unveiled a sweeping expansion of its Canadian industrial footprint—signing multiple strategic Memorandums of Understanding (MOUs) with leading domestic companies spanning steel, space, artificial intelligence, and advanced electro-optical technologies.
The agreements—signed with Algoma Steel, Telesat, MDA Space, Cohere, and PV Labs—establish a cross-sector industrial cooperation framework in support of Canada’s Patrol Submarine Project (CPSP). Together, they signal a long-term, whole-of-ecosystem approach to anchoring submarine construction, sustainment, and advanced technology development inside Canada.
The timing is deliberate. The Republic of Korea views CPSP as a catalyst to elevate the Canada–Korea relationship into a durable, whole-of-government strategic partnership spanning defence, industry, technology, and security cooperation—aligned with the Canada–Korea Free Trade Agreement, the Comprehensive Strategic Partnership, the Security and Defence Cooperation Partnership, and Canada’s Indo-Pacific Strategy.
According to a recent KPMG analysis, Hanwha-led industrial cooperation related to CPSP could support approximately 200,000 job-years over a 15-year period, with the potential to grow further as additional partnerships and investments are implemented.
Anchoring Submarine Steel—and Canada’s Industrial Base
At the core of the announcement is a binding MOU between Hanwha Ocean and Algoma Steel to establish a long-term strategic arrangement supporting both submarine construction and the revitalization of Canada’s steel sector.
The partnership is designed to leverage Algoma’s domestic steelmaking capabilities and Canadian workforce to anchor key elements of submarine construction and sustainment in Canada—reinforcing naval readiness and industrial sovereignty.
Under the MOU, Hanwha Ocean is to provide Algoma with an aggregate potential value of up to USD $250 million (approximately CAD $345 million), comprising support for the development of a new structural steel beam mill in Canada, as well as anticipated purchases of steel products for CPSP-related submarine construction and associated maintenance, repair, and overhaul (MRO) infrastructure in Nova Scotia and British Columbia.
The beam mill investment would also open new commercial pathways beyond submarines—supplying steel for infrastructure, housing, and road projects, and creating new opportunities for Canadian workers in a market historically dominated by imports.
“This partnership is about working side-by-side with Algoma as a leading Canadian steelmaker to build something lasting. By anchoring steel production, infrastructure, and long-term sustainment in Canada, we are committed to strengthening Canada’s industrial resilience and supporting a submarine capability that Canadians can rely on today and for generations,” said Hee Cheul Kim, President & CEO, Hanwha Ocean.
“As we usher in a new era for Algoma with electric arc furnace steelmaking and modernized finishing capabilities, this strategic arrangement with Hanwha Ocean represents a foundational step forward in our diversification strategy. It reinforces our focus on becoming Canada’s leading sustainable steelmaker, aligned with the country’s nation-building priorities in defence and infrastructure. We also recognize and applaud the Government of Canada’s support for policies that strengthen domestic manufacturing, supply-chain resilience, and long-term industrial capability,” expressed Rajat Marwah, CEO, Algoma Steel
Sovereign LEO Connectivity for Maritime and Submarine Operations
In space and secure communications, 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.
The cooperation focuses on secure, high-capacity, and resilient satellite communications applicable to defence, maritime, and advanced naval platforms. It also builds on intergovernmental alignment between Canada and South Korea on next-generation LEO communications and advanced maritime platforms, including exploration of cooperation related to Korea’s LEO communications satellite constellation (K-LEO) and defence user terminals compatible with both K-LEO and Telesat Lightspeed.
“This collaboration brings together complementary resources and expertise to deliver next-generation, sovereign LEO communications capabilities for Canada, South Korea, and our allied partners. The secure, high-performance Telesat Lightspeed architecture—paired with Hanwha’s advanced systems expertise—positions us to support critical defense missions and national priorities with unmatched reliability,” said Dan Goldberg, President and CEO of Telesat.
“This partnership enhances our ability to deliver secure LEO communications for defense and maritime operations. By expanding partnerships with trusted global leaders, Hanwha Systems will continue to strengthen its position in the global market and advance its role as a key defense and space technology provider,” added Son Jae-il, CEO of Hanwha Systems.
Defence Space Cooperation with MDA Space
Hanwha Systems and MDA Space have also entered into an MOU to explore collaboration on advanced satellite technologies, including development of Korea’s sovereign K-LEO defence constellation leveraging MDA’s AURORA™ software-defined digital satellites.
The K-LEO constellation is a flagship national initiative designed to strengthen Korea’s sovereign defence capabilities and ensure secure, resilient communications and data services for national security operations.
“This MOU marks an important first step in exploring collaboration with a global partner to advance Korea’s defence space capabilities. We will continue to assess next-generation satellite solutions capable of addressing evolving operational requirements,” stated Jae-il Son, CEO of Hanwha Systems.
“We are honoured to partner with Hanwha in support of Korea’s sovereign K-LEO defence constellation. This collaboration highlights the global confidence in MDA AURORA’s secure dual-use software-defined satellite technology to deliver mission-critical flexibility, performance, and resilience for national defence networks. Together with Hanwha, we look forward to advancing Korea’s defence infrastructure and enabling a new era of secure connectivity,” conveyed Mike Greenley, CEO of MDA Space.
AI-Enabled Submarines and Smart Shipyards
Hanwha Ocean, Hanwha Systems, and Cohere have signed an MOU to explore collaboration on advanced artificial intelligence technologies in support of CPSP.
The partnership focuses on joint development of AI models—including large language and multimodal models—to enhance submarine operations and shipyard efficiency. The cooperative framework will assess AI-enabled applications across submarine platforms and related industrial processes.
“This partnership is a declaration of Hanwha’s commitment to becoming deeply integrated into Canada’s technology ecosystem. By combining Cohere’s world-class AI capabilities with Hanwha’s marine system expertise, we will demonstrate the potential of Made-in-Canada innovation not only for the CPSP but in the global defense market,” explained Sung-chul Eoh, President of Hanwha Ocean’s Naval Ship Division.
“Through this three-way collaboration with Cohere and Hanwha Ocean, Hanwha Systems is bringing together Canada’s advanced AI technologies and Korea’s proven shipbuilding and defense capabilities to develop next-generation AI models for the shipbuilding industry, spanning design, production, and operations.
As a top-tier Korean provider of mission-critical maritime solutions for nearly all classes of naval vessels, including submarines, as well as naval manned-unmanned teaming (MUM-T) and enterprise IT solutions, we will leverage this combined expertise to support Canada’s shipbuilding ecosystem and help strengthen its naval defense capabilities,” said Son Jae-il, CEO of Hanwha Systems.
“We look forward to partnering with Hanwha Ocean and Hanwha Systems to integrate our cutting-edge agentic AI platform and enterprise-grade AI models–customized for shipbuilding and defence industries–into mission-critical defence applications, including the Canadian Patrol Submarine Project.” “Securely deployed AI solutions will enable real-time analysis of operational data and equipment diagnostics for effective deep-sea operations and more efficient decision making,” expressed Andrew Chang, VP of APAC at Cohere.
Advancing Canadian EO/IR Excellence
In electro-optical and infrared systems, Hanwha Systems and PV Labs have entered into an MOU to jointly develop advanced capabilities for Electro-Optical Tactical Systems.
Hanwha Systems plans to support local development, system integration, and production activities in Canada, including technology transfer to PV Labs. The products will be jointly marketed for global export markets, with expected economic impacts including skilled job creation and regional growth—particularly in Burlington, Ontario, where PV Labs is headquartered.
“This partnership with PV Labs represents an important step in advancing Hanwha Systems’ global EO/IR capabilities,” said Jae-il Son, a CEO of Hanwha Systems.
“By combining Hanwha Systems’ expertise in defense electronics with PV Labs’ strengths in stabilized electro-optical technologies, we aim to deliver a next-generation product that meets the evolving operational requirements of global customers, while also standing ready to contribute to Canada’s advanced industrial ecosystem through long-term investment and partnership,” he added.
“This agreement with Hanwha Systems builds on an established relationship grounded in technical collaboration and trust. Together, we are advancing next-generation advanced tactical imaging systems based on Canadian-developed technology that meet allied operational needs, while strengthening Canada’s defence industrial base, supporting high-skilled jobs, and enabling global export opportunities,” said Mark Chamberlain, Founder and CEO of PV Labs.
A Nation-Building Industrial Blueprint
Taken together, Hanwha’s expanding network of Canadian partnerships illustrates a strategy that goes far beyond platform delivery. It is about embedding advanced manufacturing, digital technologies, space systems, and AI inside Canada’s defence industrial base—creating enduring capacity that supports sovereignty, resilience, and economic growth.
For CPSP, the result is a submarine enterprise designed not just to acquire boats, but to cultivate a multi-decade Canadian ecosystem capable of sustaining, upgrading, and evolving them—powered by Canadian workers, Canadian technology, and Canadian industry.