Canada’s Arctic build-up fuels new generation of defence contractors

CALGARY — There have been renewed calls for Canada to assert its sovereignty in the Arctic and bolster its defences amidst growing threats from China and Russia in the region.Prime Minister Mark Carney recently announced that Canada has reached NATO’s target of spending 2% of GDP on defence, with commitments to increase that to 3.5% by 2035.A significant portion of that funding is expected to be directed toward the Arctic, and recent events have underscored the urgency of improving Canada’s capabilities in the region.Earlier this month, more than 30 Canadian Army soldiers suffered frostbite during a training exercise in Alaska, raising concerns about equipment readiness and operational preparedness in extreme conditions.Answering the call are both startups and major industry players looking to invest in a rapidly expanding market as new defence technologies and infrastructure proposals begin to take shape.Bloomberg reports that Juno Industries Inc. — a Vancouver-based defence technology startup — is seeking to capitalize on the moment.The company is preparing to launch its first product, a communications and sensor platform for Arctic operations known as Polar Nexus.Developed in partnership with Critical Infrastructure Technologies Ltd., the system is designed to integrate drones, sensors, and communications into a single deployable hub.Chief executive Hunter Scharfe said the company is positioning itself at the forefront of next-generation defence systems, particularly in Arctic environments, and Juno also already has military experience, as the company’s co-founder and executive chairman is Harjit Sajjan, who previously served as Canada’s defence minister and as an officer in the Canadian Armed Forces (CAF)..The startup — founded in April 2025 — is aiming to become what industry insiders describe as a “neo-prime” contractor — a fast-scaling company competing with traditional defence giants such as Lockheed Martin Corp.“Autonomous systems are going to become the forefront of defence investment, and those systems are very powerful and have a lot of different data capabilities,” Scharfe said, adding that the issue will be what platform is trusted to trawl through the data, interpret it, and provide officials with options for action going forward.“Juno absolutely wants to be that platform,” he said.Sajjan said in an interview that the company is already in discussions with the CAF, and counts former Royal Canadian Air Force commander Michael Hood among its advisers.Calgary-based ATCO Ltd. has also signalled plans to pursue additional investments in the Arctic after acquiring a 40% stake in a proposed deepwater port project along the Northwest Passage.According to Postmedia, the project — led by West Kitikmeot Resources Corp. — includes a $1.2-billion plan to build the Grays Bay Road and Port — a development that would create the first overland link between the Arctic Ocean and North America’s highway network.The proposal also includes a 230-kilometre all-season road north of Yellowknife, as well as a new airstrip..Jim Landon, president of ATCO Frontec — which handles the company’s defence contracts — said the Arctic represents an “immense opportunity” for the organization, but “bold ambitions for the Arctic can only be achieved if we do it together and with northern communities leading the way.”“We need to work out how we’re going to do this faster, but without taking shortcuts,” Landon said.The proposal is currently on Ottawa’s major projects list for fast-tracking.“The projects that tend to get the headlines at the moment are things like the F-35 and submarines and so on,” Landon said.“They’re important, but it’s no good if you can’t land it somewhere, if you can’t dock it somewhere, if you can’t refuel it, if you can’t rearm it.”

Canada’s Arctic build-up fuels new generation of defence contractors

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