Carney's $6.6B defence plan aims to support Canada's auto and steel sectors.

Prime Minister Mark Carney announced a $6.6-billion defence industrial strategy to raise domestic defence procurement to 70% and create 125,000 jobs over the next decade; industry leaders welcomed the move while urging clearer procurement timelines.

Prime Minister Mark Carney unveiled a $6.6-billion defence industrial strategy intended to strengthen domestic defence production and supply chains. The plan raises the share of defence spending directed to Canadian firms from about 30 per cent to 70 per cent and targets 125,000 jobs over the next decade. Officials also said the strategy aims to grow defence exports and increase sector revenues over the coming years. Industry groups responded positively but asked for clearer procurement details on timelines and requirements. Key points: - The federal strategy is described as a $6.6-billion plan to boost domestic defence production and procurement to 70% of defence spending, up from roughly 30% today. - The government projects the plan will support or create 125,000 jobs over the next ten years and aims to increase defence exports and sector revenues compared with 2022 levels (the defence sector was $14.3 billion in 2022). - The strategy includes measures on critical minerals tied to defence, a program to support domestic ammunition and explosives production, and a commitment to open a nitrocellulose plant by 2029. - Industry leaders, including automotive and steel associations, welcomed new opportunities but called for clearer information on what Ottawa will procure and requested procurement details within the next six to 12 months. Summary: The announcement sets a direction toward greater domestic defence procurement and seeks to redirect more federal defence spending to Canadian firms, with implications for auto parts suppliers and steel producers that can pivot to defence work. Undetermined at this time is how quickly companies will convert capacity and which specific procurements will be issued; industry representatives have asked the government for procurement clarity in the coming six to 12 months.