Canada plans to direct at least 2,3 billion CAD (about 1,8 billion USD) over five years to develop the production of drones and counter-drone systems, according to the federal budget draft for 2026.
Investment amount and objectives
The funds are intended to enable the Department of National Defence to accelerate the development, procurement and deployment of unmanned systems and counter-drone technologies. The budget draft is part of plans to modernise the Canadian Armed Forces and expand domestic defence production; the investments are primarily aimed at strengthening Canada’s military capabilities, rather than serving as a direct aid package to Ukraine.
The budget draft takes into account defence cooperation agreements concluded in September during President Volodymyr Zelensky’s visit to Canada. The funding plan is set for five years and covers both development and serial production of the relevant systems.
Supply to Ukraine and industrial cooperation
Prime Minister of Canada Mark Carney promised to expand domestic drone production, one third of which will go to Ukraine. In addition, Canada and Ukraine reached agreements on joint drone production, military assistance and support in the field of air defence.
Ottawa announced the creation of a national drone market modelled on the Brave1 platform, which is intended to connect military buyers with nearly 400 Canadian suppliers. Carney said Canada intends to build capacity to produce millions of drones within two years and will also cooperate with Ukraine on unmanned ground vehicles, counter-drone technologies and other military equipment.
