Australia has announced a landmark A$2.5 billion (US$1.75 billion) defence agreement with Canada to supply advanced long-range radar technology, marking the largest defence export deal in Australia’s history.

The agreement involves the sale of Australia’s Over-the-Horizon Radar technology, the first time the system has been exported to another country. The technology is expected to enhance Canada’s ability to monitor activity across its vast Arctic territory.

Australian Prime Minister Anthony Albanese described the deal as a major step forward for Australia’s defence industry and international partnerships.

“Today’s agreement marks a significant milestone in Australian defence trade and lays the foundation for deeper and mutually beneficial defence industry collaboration with Canada,” Albanese said in a statement.

The radar technology is based on Australia’s Jindalee Operational Radar Network, a system capable of detecting and tracking aircraft, ships and missiles at distances of up to 3,000 kilometers (1,864 miles).

Canadian officials said the acquisition will play a key role in strengthening surveillance and security capabilities in the Arctic, a strategically important region that accounts for roughly 40 percent of Canada’s landmass.

Although sparsely populated and lacking extensive infrastructure, the Arctic has become an increasingly important area for national security, particularly as geopolitical competition intensifies in the region.

Much of Russia’s Arctic territory lies across from Canada and the U.S. state of Alaska, making monitoring and early-warning capabilities a growing priority.

Stephen Fuhr said the project forms part of a broader effort to modernize Canada’s Arctic defence infrastructure.

“Canada is reinforcing Arctic security through the Arctic Over-the-Horizon Radar project,” Fuhr said.

He added that the initiative would contribute to an integrated surveillance and communications network designed to improve Canada’s ability to detect, assess and respond to activity across the Arctic region.

Australian officials said the agreement is expected to create approximately 300 jobs domestically and represents the first phase of a broader defence and technology partnership between the two countries.

The deal highlights growing defence cooperation between Australia and Canada as both nations seek to strengthen security capabilities in response to evolving global and regional challenges.