Australia Signs Landmark $2.5 Billion Defence Export Deal with Canada for Advanced Radar System

A $2.5 billion deal to sell Australia's highly advanced over-the-horizon radar system to Canada has been signed, becoming Australia's most valuable defence export ever.

Canada is buying the powerful radar system to monitor the Arctic, modelling the system on Australia's powerful JORN radar.

The JORN radar has been operating for 40 years, allowing up to 3,000 kilometres of surveillance coverage of Australia's northern approaches.

Canada's prime minister, Mark Carney, announced in March that his country would spend billions acquiring the system, the first time Australia has sold the technology.

Now the first stage of that deal has been signed, allowing the deal to go ahead with the prospect of more to come.

The deal was noted at the time as a sign that Canada was keen to broaden its defence partnerships beyond a heavy reliance on the United States.

Canada's secretary for defence procurement, Stephen Fuhr, said the deal marked a significant shift in the Australia-Canada relationship.

"As the world adjusts to its new strategic and economic realities, I can't think of a stronger partner to work with than Australia," he said.

The Canadian project will be built through defence manufacturer BAE Systems, which also maintains Australia's JORN radar.

Canada has provisioned $6.5 billion in total for the project, and will look at expanding the network in years ahead.

Defence Minister Richard Marles said the deal comes with benefits to Australia beyond the billions in export revenue, as Australia will benefit from future shared expertise in developing the radar system further.

He said Australia would be open to selling the radar to other countries, like the US, but noted the sensitivity of the technology.

"That said, under our government, we have looked to be more ambitious in terms of finding more opportunities to engage in defence industry exports."

Canada looks at Ghost Bat aerial drone

Mr Fuhr said he would also be taking the chance to inspect a Ghost Bat uncrewed aircraft while in Australia.

The Ghost Bat is a highly capable drone designed to operate alongside fighter aircraft like the F-35.

It was primarily designed for intelligence and reconnaissance missions, with a range of about 3,700km, but can also carry weapons.

Germany is taking a strong interest in acquiring the Ghost Bat, and Mr Fuhr said Canada is also keen to take a look.

"I'm quite interested; collaborative combat aircraft are a thing, and it seems like Australia has a bit of a lead there," he said.

"So I'm curious to see where that's at, and I'll see it this afternoon."