Question Period Note: Space launch capability

• Canada’s Defence Industrial Strategy identifies space launch as a sovereign capability essential to national security, defence readiness, and strategic autonomy.
• Through Budget 2025, the Strategy includes $182.6 million over three years to establish a sovereign Canadian space-launch capability, reducing dependence on foreign launch providers for critical space access.
• Canada has also invested in a 10-year, $200 million agreement to lease a dedicated space launch pad that will serve as the central foundation for a multi-user spaceport near Canso, Nova Scotia.
• Once operational, the facility will allow satellites to be launched directly from Canadian soil.
• Operated by Maritime Launch Services, this spaceport will support the Defence Team’s operational needs and those of other Government of Canada organizations.
• Maritime Launch Services is required to spend at least 90 per cent – $180 million – of the proceeds from the agreement in Canada or with Canadian companies.
• This condition is intended to ensure that the majority of public funds directly support the domestic industrial base.

Space Launch: $182.6 million over three years
* Through Budget 2025, the Defence Industrial Strategy (DIS) includes $182.6 million over three years to establish a sovereign Canadian space launch capability, reducing dependence on foreign launch providers for critical space access.
* As part of this commitment, the National Defence program for Innovation for Defence Excellence and Security is investing $105 million over three years in the development of responsive light-lift launch systems for small payloads by 2028-29 to accelerate Canadian space-launch-related innovation and to strengthen the foundations needed for future sovereign launch capability.
* Through the first round of this funding, three Canadian companies were awarded $8.3 million each to advance their space rocketry projects.
* This funding will foster Canadian industrial and academic collaboration to develop the launch systems that will support future National Defence space missions.
* Investing in sovereign launch capability now means that Canadians and their businesses can participate in the space economy and reap benefits for decades to come.
* A domestic launch capability also supports national security and strategic autonomy by enabling rapid, reliable access to space for defence, communications, and surveillance without reliance on foreign launch providers.
Space-Launch Pad Lease Agreement
* On March 17, 2026, the Government of Canada announced a 10‑year, $200‑million agreement to lease a future dedicated space‑launch pad that will serve as the central foundation for a multi-user spaceport. Operated by Maritime Launch Services, this spaceport will support the operational needs of National Defence and the wider Government of Canada while also offering ad hoc access to allies and partners.
* Basic infrastructure already exists at the site, which has already achieved regulatory approvals and will continue to be used and developed over the course of 2026. For example, there is a test launch occurring in June 2026.
* Payment was provided to accelerate the development of long-lead construction items, including for the conduct of testing and development of the Government’s launch pad.
* The Government is paying $20 million annually to lease the land and associated infrastructure and access associated services of a future dedicated space launch pad, for a total commitment of $200 million over a ten-year period. The payment structure includes a single payment of $20 million in Fiscal Year 2025-2026, followed by quarterly payments of $5 million for the remainder of the lease term, until the agreement concludes or is terminated.
* The lease agreement establishes a ten-year duration and places extensive obligations on Maritime Launch Services related to the development and delivery of an operationally capable spaceport.
* Maritime Lauch Services is required to spend at least 90 per cent ($180 million) of the proceeds from the agreement in Canada or with Canadian companies. This condition is intended to ensure that the majority of public funds directly support the domestic industrial base.
Defence Industrial Strategy
* Announced on February 17, 2026, the DIS is intended to transform Canada’s defence industry by prioritizing Canadian suppliers and materials, investing in Canadian innovation and commercialization, and streamlining procurement to give businesses consistent and predictable demand.
* Budget 2025 provided $6.6 billion over five years to the initial investments of the DIS to: improve access to capital, drive research and innovation, bolster domestic supply chains, and grow critical resource stockpiles.
* This included $182.6 million over three years for National Defence to establish a sovereign space launch capability.

Quick facts

The Five Pillars of the Defence Industrial Strategy (DIS)
1. Renewing our relationship with industry;
2. Procuring strategically through the new Defence Investment Agency and a new “Build-Partner-Buy” framework;
3. Investing purposefully to strengthen an innovative Canadian defence sector;
4. Securing supply chains for key inputs and goods; and
5. Working with domestic partners, including in Canada’s North and Arctic.
Key Sovereign Capabilities – 10 priority areas for investment
The Defence Industrial Strategy identifies 10 priority areas for investment to maximize strategic autonomy for capabilities critical to the defence of Canada and where Canada has an existing or potential advantage, these include:
1. Aerospace: Aerospace Platforms, Avionics, and Aircraft Communications
2. Ammunition: Common Ammunition, Battle-Decisive Munitions, Small Arms, Missiles and Bombs
3. Digital Systems: Secure Cloud, Artificial Intelligence, Quantum Computing and Communications, Integrated Command, Control and Communications, High-Assurance Communications Equipment
4. In-Service Support: Naval, Land, Air
5. Personnel Protection: Medical Counter Measures
6. Sensors: Marine Sensors, Quantum Sensors, Electronic Warfare
7. Space: Space-Based Intelligence, Surveillance and Reconnaissance, Space Domain Awareness, Satellite Communications, Space Launch
8. Specialized Manufacturing: Land Vehicles / Surface Ships, including Icebreakers and Marine Systems
9. Training and Simulation: Naval, Land, Air
10. Uncrewed and Autonomous Systems: Uncrewed and Autonomous Land, Aerial, Underwater and Surface Systems (including Uncrewed Collaborative Platforms)
Responsible Principals: Assistant Deputy Ministers (Policy-Industry)/(Infrastructure and Environment)/(Defence Research and Development Canada), Royal Canadian Air Force
Drafted by: Director General Policy Coordination: Parliamentary Affairs
Date Approved: June 2, 2026