Canada advances defence industrial strategy with over $9.3 million investment in Alberta businesses

The Government of Canada is making sustained and strategic investments to strengthen the Canadian Armed Forces and protect national sovereignty to combat today’s complex and unpredictable global security environment. Central to this effort is Canada’s first-ever Defence Industrial Strategy, which aligns long-term federal defence investments with domestic defence industry capabilities. 

This strategy supports Alberta businesses in developing Canadian-made defence technologies, enhancing manufacturing capacity, and building resilient supply chains – all while creating quality jobs for Canadians.

Federal investment through the Regional Defence Investment Initiative

Corey Hogan, Member of Parliament for Calgary Confederation and Parliamentary Secretary to the Minister of Energy and Natural Resources, announced on behalf of Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada (PrairiesCan), a combined federal investment exceeding $9.3 million. This funding, provided through the Regional Defence Investment Initiative (RDII), will stimulate economic activity for Alberta businesses while reinforcing Canada’s national defence and security supply chain.

The investment will support six Alberta-based small and medium-sized enterprises (SMEs) in bringing cutting-edge defence technologies to market, accelerating dual-use innovations, and reinforcing Canada’s leadership in producing defence solutions. A detailed list of projects receiving PrairiesCan investment is available in the associated backgrounder.

The Canadian defence industry contributes nearly $10 billion to the gross domestic product and supports more than 81,000 jobs.

Increasing investments in core military capabilities and dual-use technologies are positioning Canada to meet the NATO Defence Investment Pledge of investing 5% of GDP by 2035.

Additionally, approximately $63 billion was allocated in 2025–26 across the Department of National Defence, Canadian Armed Forces, Canadian Coast Guard, and other government departments, supporting personnel, infrastructure, equipment, and operational priorities.

Accelerating Canada’s defence industrial base and military readiness

Over the past year, the Government of Canada has moved with unprecedented speed and scale to rebuild, rearm, and reinvest in the Canadian Armed Forces and defence industrial sector. 

This progress has enabled Canada to meet the NATO 2% defence spending target five years ahead of schedule. 

Beyond enhancing military readiness, these historic investments, including the RDII funding announced today, are driving innovation, expanding the defence industrial base, and fostering long-term prosperity for Canadians.

PrairiesCan RDII investments in Alberta: Project highlights

The RDII is a $379.2 million, three-year national program delivered by Canada’s seven Regional Development Agencies, aligning with the Defence Industrial Strategy to rebuild and reinvest in Canada’s military and defence supply chains.

PrairiesCan continues to accept RDII applications from eligible businesses and organisations operating in the Prairie provinces. Six repayable projects have already been announced by PrairiesCan. 

3-Ci Manufacturing. $300,900 repayable funding to expand production capacity for military-grade cable and wiring systems, supporting strategic growth and new equipment investments.

Canadian UAVs. $3 million repayable funding to deliver a deployable drone platform and intelligence suite for reconnaissance and situational awareness, supporting defence and security applications.

Microlynx Systems. $2 million repayable funding to improve high-power radio frequency amplifiers for Arctic domain awareness, advancing Canada’s Polar Over the Horizon Radar (POTHR) capabilities.

MRO Electronic Supply. $1 million repayable funding to launch the Defence Capacity Expansion Project, creating skilled technical roles and strengthening domestic production of mission-critical components.

Technalogix. $1 million repayable funding to design and test high-frequency power-amplifier products for monitoring airspace and waterways, including harsh Arctic conditions.

VizworX. $2 million repayable funding to commercialise the Virtual Operations Environment (VOE), a Virtual Reality-based command and control platform aiding mission planning, task assignment, and progress monitoring.

Quotes from leadership

The Honourable Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada, said, “Canada’s sovereignty and security depend on a strong and resilient domestic defence industry—and Alberta and the Prairies are at the heart of that effort. With world-class expertise in advanced manufacturing, energy, and innovation, Prairie businesses are uniquely positioned to deliver the made-in-Canada solutions our country needs.” 

“By investing in home-grown technologies right here in Alberta, we are strengthening our national defence industrial base, creating good jobs, and ensuring Canadian companies can provide secure, reliable equipment for the Canadian Armed Forces—today and for the future.”

Corey Hogan, Member of Parliament for Calgary Confederation and Parliamentary Secretary to the Minister of Energy and Natural Resources, added, “Alberta is playing an increasingly important role in Canada’s growing defence manufacturing sector. Calgary businesses have the skills, expertise and drive to scale-up to meet Canada’s national security needs.”

“Today’s investment through the Regional Defence Investment Initiative will help innovative area companies expand production of Canadian military equipment, strengthen supply chains and increase resilience in the defence sector.”

Jeff LaFrenz, President of VizworX, one of the funded companies, said, “Recognising the very stringent vetting and prioritisation process that has gone into selecting RDII recipients, all of us at VizworX are extremely proud to have been selected for this support.”

“We are excited to be able to accelerate the development and deployment of our Virtual Operations Environment (VOE), a Virtual Reality-based Command and Control solution, in support of the needs of the Canadian Armed Forces and our NATO allies. As a true dual-use solution, VOE will also enable significant enhancements to emergency and disaster response planning and logistics globally.”

Canada’s investments through the RDII would encourage innovation, strengthen domestic capabilities, and ensure the Canadian Armed Forces remain equipped to protect the nation’s sovereignty now and into the future.