Canada plans to invest C$2.3 billion over five years in military drones and counter-drone systems in its proposed 2026 federal budget.
The funding, equivalent to $1.8 billion, would go to the Department of National Defence. It would accelerate the development, procurement and deployment of uncrewed systems and technologies designed to counter them. The proposal has been submitted to parliament.
The proposal forms part of Canada's broader efforts to modernize its armed forces and expand domestic defense production. The investment follows defense cooperation agreements reached during President Volodymyr Zelensky's September visit to Canada.
Prime Minister Mark Carney pledged to expand domestic drone manufacturing. Canada agreed to supply one-third of Canadian-produced military drones to Ukraine. The countries signed agreements on joint drone production and the exchange of advanced combat experience.
Ottawa plans to establish a national drone marketplace modeled on Ukraine's Brave1 defense innovation platform. The marketplace would connect military buyers with nearly 400 Canadian suppliers. The countries also agreed to cooperate on unmanned ground vehicles, counter-drone technologies, air defense support and other military equipment.
Carney said Canada intended to develop the capacity to manufacture millions of drones within two years. The plan draws on Ukraine's battlefield experience and Canadian manufacturing expertise.
The investment is intended primarily for Canada's military capabilities. It is not a direct $1.8 billion aid package for Ukraine.
