Canada Allocates $900M to Defence Industrial Strategy with Focus on Quantum Technologies

The Canadian government has announced a $900 million investment through the National Research Council of Canada (NRC) to implement a long-term Defence Industrial Strategy. This initiative focuses on the development and commercialization of dual-use technologies, specifically targeting quantum systems, aerospace, uncrewed platforms, and biomedical applications. The strategy is designed to align with national security requirements while supporting a defence spending target of 2% of GDP for the 2025–2026 period.

The quantum component of the strategy encompasses three primary technical domains: computing, communications, and sensing. Quantum computing efforts are directed toward cryptographic applications, material science simulations for warfighting materials—such as high-capacity batteries—and integration with advanced AI models. Quantum communications research focuses on jamming-resistant key distribution and anti-spoofing protocols for secure battlefield communications. The development of quantum sensors targets high-sensitivity detection of magnetic fields, gravitational variations, and motion.

The NRC will oversee the strategy’s implementation, building on a portfolio of over 975 joint projects conducted with the Department of National Defence since 2021. The program aims to reinforce a domestic defence industrial base that currently contributes approximately $10 billion to the national GDP. This investment also establishes a trajectory to meet the North Atlantic Treaty Organization (NATO) Defence Investment Pledge, which targets a defence spending level of 5% of GDP by 2035.

For full details on the Defence Industrial Strategy and the NRC’s role in quantum innovation, consult the official press release here.

March 21, 2026