C$2 Billion to Strengthen the Military: Canada to Build 190 Armoured Vehicles at Home

By Tahani Elghazaly
Published July 17, 2026

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Canada has announced a major defence manufacturing agreement worth nearly C$2 billion to produce 190 additional armoured combat support vehicles domestically, as Ottawa moves to strengthen the Canadian Armed Forces while directing more military spending toward local workers and suppliers.

Prime Minister Mark Carney unveiled the four-year agreement during a visit to the General Dynamics Land Systems-Canada facility in London, Ontario. The new vehicles will increase Canada’s Armoured Combat Support Vehicle fleet from 360 to 550.

The vehicles will be designed by Canadian engineers, manufactured using Canadian materials and assembled by Canadian workers at the London plant. The federal government estimates that the partnership will create or sustain more than 6,000 well-paying jobs annually across Canada over the next eight years.

Production will involve a domestic network of more than 600 suppliers operating across over 100 Canadian communities. Those companies will provide materials, engineering services, thermal-imaging technology and specialized vehicle components, spreading the contract’s economic benefits beyond Ontario.

General Dynamics Land Systems-Canada currently employs approximately 1,700 people at its London facility. The company has manufactured military vehicles in Canada since 1977 and says its Canadian supply chain supports thousands of additional jobs nationwide.

The Armoured Combat Support Vehicles are based on the Light Armoured Vehicle 6.0 platform and are designed to protect military personnel against mines, improvised explosive devices and enemy fire while maintaining the mobility required to operate alongside front-line forces.

The vehicles are produced in eight configurations, including armoured ambulances, command posts, troop and cargo carriers, electronic-warfare vehicles, engineering vehicles and mobile repair and recovery platforms. Ottawa said the additional vehicles will be used for military training at Canadian Armed Forces bases across the country.

The agreement also establishes General Dynamics Land Systems-Canada as the first company selected as a strategic partner under Canada’s Defence Industrial Strategy. The framework is intended to accelerate military procurement while encouraging companies to invest in Canadian research, domestic supply chains and skilled employment.

In return, the federal government will serve as a long-term customer and assist participating Canadian companies in expanding production and gaining access to international defence markets.

General Dynamics also confirmed that the agreement includes the production of an additional 35 armoured combat support vehicles for Ukraine. Canada has previously donated 89 vehicles of this type to Ukraine as part of its military assistance commitments.

The announcement reflects Ottawa’s broader effort to rebuild Canada’s military capabilities while reducing dependence on foreign defence supply chains. It also signals that future military investments will increasingly be used as an economic policy tool to support domestic manufacturing, technological development and highly skilled Canadian jobs.