A Calgary-based defence tech startup, North Vector Dynamics, has secured a $4.2-million, four-year contract from Canada’s defence department, marking a significant step in the country’s push to bolster military spending and technological innovation. The contract, awarded by Defence Research and Development Canada (DRDC), will support the development of high-speed and hypersonic aeropropulsion technologies, covering aircraft flying at speeds above Mach 5.
North Vector, co-founded by University of Calgary engineering professors Craig Johansen and Paul Ziadé, specialises in defence and autonomy technologies, including high-speed aircraft propulsion, drone attack training systems, and AI-guided missile systems. The research will be conducted at a Canadian military research station in Saint-Gabriel-de-Valcartier, Québec, and will focus on hypersonic cruise missiles, hypersonic glide vehicles, and defences against such technologies. Additionally, the contract includes investigating small satellite launcher concepts for space access.
“Canadians have stepped up in a very big way,” said Ziadé, highlighting the growing investment in military and defence tech. The startup, previously known as Think Solutions Engineering, emerged from stealth in May and has already received $2.5 million in government grants through the Innovation for Defence Excellence and Security (IDEaS) program. It was also part of the first Aerospace Accelerator Program at Innovate Calgary this year.
North Vector’s counter-uncrewed aerial systems (CUAS) products, designed to target and neutralise consumer drones used for military purposes, are closer to commercialisation than its aeropropulsion technologies. The startup has already garnered interest from large defence companies in the US, the United Arab Emirates, and the Philippines.
The contract aligns with Prime Minister Mark Carney’s pledge to increase national defence spending to 5 percent of annual GDP by 2035, including 3.5 percent for core military capabilities such as modernising military equipment and technology. Carney also announced the creation of the Defence Procurement Agency and the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS), a defence research initiative modelled after the US Defense Advanced Research Projects Agency (DARPA).
Ziadé and North Vector chief commercial officer Omar Saleh have advocated for treating defence work with the same importance as other high-tech sectors like aerospace, energy, or AI. They argue that traditional defence procurement timelines often result in outdated technology by the time it is delivered.
As AI-enabled and autonomous weapons are increasingly deployed in conflict zones, North Vector emphasises the importance of human oversight in its systems. “In the systems that we’re developing right now, we definitely see a human in the loop…for decision making on whether or not to engage a threat,” Ziadé said.
This contract and the broader push for investment in defence tech signal a shift in Canada’s approach to military innovation and procurement. As the sector gains momentum, North Vector Dynamics is poised to play a pivotal role in shaping the future of Canadian defence technology.