Canada stands at the brink of a historic shift, potentially ending 70 years of reliance on U.S. fighter jet technology by producing Sweden’s Gripen jets and Rolls-Royce EJ230 engines domestically. This bold move threatens to radically alter NATO’s power dynamics and marks a defining moment for Canadian defense sovereignty.
For decades, Canada’s air military power has been tethered to American technology, from fighter jets to jet engines, granting Washington de facto control. However, recent developments suggest Ottawa is seriously contemplating a break from this status quo by manufacturing cutting-edge Swedish Gripen fighters and their engines within Canada—a move unheard of since the Cold War.
The proposed plan pivots on resurrecting the EJ230 engine, an advanced Rolls-Royce design with zero American components, eliminating the need for U.S. approvals on maintenance, spare parts, and technology transfers. Such independence would grant Canada unprecedented control over its airpower, fundamentally challenging entrenched NATO supply chains dominated by Washington.
This idea traces back to the late 1990s but was dismissed in favor of American engines due to economic and political stability at the time. Today’s geopolitical landscape is sharply different—heightened U.S. unilateralism and aggressive tactics under former President Trump’s administration 𝓮𝔁𝓹𝓸𝓼𝓮𝓭 the vulnerabilities of Canada’s dependence, fueling demands for autonomy.
Prime Minister Mark Carney’s March 2025 order for a comprehensive review of the multi-billion-dollar F-35 contract with Lockheed Martin signals Ottawa’s readiness to reconsider. Although 16 F-35 jets are already secured, the remaining 72 aircraft stand in jeopardy, as political and strategic calculations evolve rapidly behind closed doors.
Seizing the opportunity, Sweden’s Saab proposes not just sales but domestic production of the Gripen fleet—including engine manufacturing—in Montreal where Rolls-Royce already boasts a formidable 75-year presence with skilled labor and infrastructure ripe for retooling. The economic allure is staggering: 12,600 new jobs and billions in investments.
This move aligns with emerging global demand. Ukraine—embroiled in conflict and rebuilding its air force—signed a letter of intent for up to 150 Gripens powered currently by American engines but eyeing the EJ230 for future production. Colombia’s recent €3.1 billion contract for 17 Gripens further indicates a shift toward non-U.S. platforms.
Additionally, countries like Thailand, the Philippines, Portugal, Peru, Argentina, and Chile are exploring next-generation fighter options, signifying a widening market hungry for affordable, politically independent airpower solutions. Analysts predict up to 400 engine units could be needed within a decade if these nations adopt the EJ230 alternative.
Yet Canada’s hesitation echoes historical trauma. The 1959 cancellation of the Avro Arrow interceptor program under U.S. pressure devastated the domestic aerospace industry and remains a national scar. That episode haunts policymakers weighing sovereignty against alliance obligations, feeding caution despite mounting pressure to change course.
Today’s U.S.-Canada relations have grown tense, with threats of tariffs and re-evaluation of critical defense agreements like NORAD under Trump’s prior administration heightening fears of coercive dependence. Canadian analysts question the true equality of NATO partnerships when vital military capabilities remain under Washington’s thumb.
While no official announcements or factories exist yet, and current Gripen deliveries to Ukraine and Colombia use American engines, the very consideration of the EJ230 engine line in Montreal reflects a profound strategic pivot. Canada is actively exploring defense industrial independence, a move resonating far beyond national borders.
If realized, domestic Gripen and EJ230 production could decisively alter NATO’s internal dynamics—not by military confrontation but through reclaimed industrial sovereignty. Canada could emerge as a pioneering model for tech independence among allied powers wary of unilateral American control over critical defense assets.
The ongoing review is expected to conclude by late summer 2025, with Canada’s decision carrying enormous implications. Will Canada finally break free from decades of dependence, or cling to a fragile alliance framework that compromises its future autonomy and industrial base?
This emerging story signals more than procurement shifts—it crystallizes a fundamental geopolitical challenge: balancing alliance loyalty against national technological sovereignty in an increasingly fractured world order. Canada’s next moves will be watched intensely by allies and adversaries alike, marking a possible turning point in NATO’s evolution.