This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning Canada's national defence, cybersecurity, weapons systems, military commitments, and Canadian Armed Forces (CAF), Royal Canadian Navy (RCN) and Royal Canadian Air Force (RCAF). Once a week, we break down the most important updates in this space in under five minutes.

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Dates: 2026-04-05 to 2026-04-11

📋 In This Week's Newsletter

• 🏛️ This Week's Parliamentary Calendar
• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week

This Week's Parliamentary Calendar

• House National Defence Committee: CEO Appointment for Defence Investment Agency Review: On April 13, the National Defence Committee will study the appointment of Doug Guzman as CEO of the Defence Investment Agency. Linda Drainville (CFO), and Vincent Robitaille (Assistant Deputy Minister, Procurement) will appear as witnesses.
• House Industry Committee to Examine AI Regulation in Strategic Industries: On April 13, the Industry and Technology Committee will hear from AI sector representatives and telecom firms on the regulation and risks of AI technologies in key Canadian industries.
• Veterans Affairs Committee Studies Barriers to Veteran Entrepreneurship: On April 13, the Veterans Affairs Committee will hear testimony from business founders and IMT Group relating to entrepreneurship opportunities and challenges for veterans.
• Transport Committee: Supporting and Modernizing Quebec and Canadian Ports: Supporting, diversifying, and modernizing Canadian ports will be discussed by the Transport Committee on April 13, with presentations by maritime and port leadership organizations.
• Public Accounts Committee Reviews Auditor General’s Report on Canadian Forces Housing: On April 13, the Public Accounts Committee will review the Auditor General’s 2025 report on housing for Canadian Armed Forces personnel, with input from DND officials and the Canadian Forces Housing Agency.

Federal Government News

Canada Directs $1.4 Billion Toward Domestic Ammunition Production and Supply Chain Resilience

Minister Joël Lightbound detailed the federal investment of $1.4 billion to increase domestic ammunition manufacturing capacity through the Canadian Defence Industry Resilience Program. Three contribution agreements with General Dynamics – Ordnance and Tactical Systems in Quebec include $355.7 million for constructing a nitrocellulose facility in Valleyfield, up to $57.9 million for new M231/M232 artillery charge capabilities, and up to $642 million for a 155mm high-explosive projectile manufacturing facility at Le Gardeur. These projects are projected to create approximately 356 jobs and increase Canada’s self-reliance in critical munitions. Additional federal assistance, previously announced, includes up to $305.4 million to IMT Precision for a new Ontario facility producing empty metal shells for modern 155mm artillery. The combined funding aims to modernize capability for sovereign ammunition production, address supply chain vulnerabilities, and expand the skilled defence workforce.

Sources: www.canada.ca

Federal Government Awards Design Contract for Canadian Coast Guard Mid-Shore Vessels

Public Services and Procurement Canada awarded a $9.6 million design contract to Kongsberg Vanguard LP for the Canadian Coast Guard’s mid-shore multi-mission vessels (MSMMs). The contract involves Ottawa-based Adaptive Marine Solutions Inc., Kongsberg Defence & Aerospace, and Salt Ship Design (Norway). Industry engagement for constructing up to six MSMMs is slated to begin by late 2026. The new fleet will replace ageing mid-shore science vessels and expand search and rescue, hydrographic, environmental response, and maritime security operations nationwide. The procurement stipulates that a minimum of 80% of contract value be performed by Canadian-based workers under the Canadian Content Policy.

Sources: www.canada.ca

DND Schedules Public Engagements on NORAD Modernization in Inuvik and Yellowknife

The Department of National Defence will hold public information sessions in Inuvik (April 21) and Yellowknife (April 23) to discuss planned infrastructure projects for North American Aerospace Defense Command (NORAD) modernization at Forward Operating Locations in the Northwest Territories. DND staff will present an overview of infrastructure plans and address community questions. The initiative is part of broader continental defence upgrades in Canada’s North.

Sources: www.canada.ca, www.canada.ca

Statement on Interim Leadership at Task Force Latvia

Lieutenant-General Steve Boivin, Commander of Canadian Joint Operations Command, confirmed the temporary removal of Colonel James Smith from his role commanding Task Force Latvia after Smith was charged under Section 129 of the National Defence Act. The charge relates to compensation and benefits processes. Lieutenant-Colonel Joel Maley will serve as interim commander. The Canadian Armed Forces state this change will not impact Operation REASSURANCE or the planned leadership transition scheduled for summer 2026, and Colonel Smith will be reassigned in Canada pending resolution of the matter.

Sources: www.canada.ca

Federal Funding Supports Battery Innovation in Quebec for Defence and Civilian Applications

Natural Resources Canada announced $11 million for three Quebec-based battery innovation projects through the Energy Innovation Program. Nano One Materials Corp. receives $4.3 million for lithium iron phosphate production scale-up; EcoPro Lithium Inc. receives $6 million for producing battery-grade lithium metal and ultra-thin anode foil; and NanoXplore obtains nearly $700,000 for prototyping high-capacity cylindrical cells. These investments target the strengthening of domestic battery and critical minerals supply chains, with applications in electric vehicles, defence, and energy storage. The funding aims to reduce reliance on foreign suppliers and reinforce domestic production capacity.

Sources: www.canada.ca

International Aerospace Innovation Forum Features Minister Joly

Minister Mélanie Joly is scheduled to speak at the International Aerospace Innovation Forum in Montréal on April 13. The Forum, organized by Aéro Montréal, will draw industry participants from the aerospace sector. Joly’s remarks are expected to cover innovation and economic development in Canadian aerospace manufacturing.

Sources: www.canada.ca

Provincial Government News

British Columbia Funds Early-Stage Marine and Maritime Technologies

British Columbia is providing nearly $3.5 million to support pilot testing of new marine and maritime technologies, including a smart-control workboat system and AI-based marine fog forecasting. Several BC companies will apply the funding to advance small vessel operations and maritime safety systems.

Sources: news.gov.bc.ca

Quebec and France Sign Joint Declaration on Digital Sovereignty

Quebec entered a new digital sovereignty partnership with France, focusing on digital identity, secure infrastructures, and artificial intelligence deployment in public administration.

Sources: www.quebec.ca

What We're Reading This Week

• Roshel Algoma Defence Partnership to Strengthen Canada’s Defence Industrial Base: Coverage of a new industrial partnership aimed at boosting domestic manufacturing capabilities.
• Power of two: How defence spending could help Canada beyond the military: Examination of the potential broader economic impacts of increased defence investment.
• How the global F-35 program strengthens Canada’s defence industry: Analysis of industrial opportunities stemming from F-35 participation.
• Quebec military tech company awarded two defence contracts: Reporting on contract awards to a Quebec-based defence technology firm.
• Defence stock strategies in a less stable world: Discussion of investment strategies in the defence sector amid global uncertainty.
• Saab dangles sovereign data centre in Montreal to undercut F-35 fighter contract: Report on Saab’s move to open a data centre in Montreal as part of its fighter jet contract competition.

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