The Canadian Department of National Defence (DND) has selected two quantum computing firms, Xanadu and Photonic, as semi-finalists in its latest defence technology challenge, marking a significant step in the country’s push to modernize its defence capabilities. The selection underscores the growing importance of quantum technologies in safeguarding national security, particularly in aerospace and maritime domains.
Through its Innovation for Defence Excellence and Security (IDEaS) program, the DND is awarding $1 million CAD to each of the 19 semi-finalists, including Xanadu and Photonic. The funding will support the development of early-stage technologies designed to future-proof North America’s defence infrastructure. Other recipients include Irreversible, the Canadian Space Mining Corporation, and ARA Robotics, alongside several universities and the Canadian arm of Lockheed Martin.
Xanadu, based in Toronto, will use the grant to design quantum computing algorithms and methodologies for next-generation batteries that can withstand extreme conditions. This research could revolutionize energy storage solutions for military applications, ensuring resilience in harsh environments. Meanwhile, Photonic, headquartered in Coquitlam, British Columbia, aims to advance its quantum repeater and networking technology. The project seeks to address known limitations in current repeater designs, ultimately contributing to next-generation quantum sensing and communication systems.
The IDEaS program, launched in 2018, is a 20-year, $1.6-billion initiative designed to foster innovation in Canadian defence and security. The latest round of funding comes as Prime Minister Mark Carney has committed to increasing Canada’s defence spending to five percent of its gross domestic product (GDP) by 2035—a historic surge in military investment since World War II. This financial boost is expected to support Canadian firms developing dual-use technologies, particularly in artificial intelligence (AI) and quantum computing.
Canada’s Minister of Artificial Intelligence and Digital Innovation, Evan Solomon, has emphasized the strategic importance of these investments. Speaking to BetaKit in June, Solomon highlighted that Ottawa plans to introduce new policies to retain Canadian quantum and AI firms amid competition from the U.S. Department of Defense’s Quantum Benchmarking Initiative. He argued that enhancing AI, quantum, sovereign computing, and cybersecurity is not just an economic imperative but a national security imperative as well.
The selection of Xanadu and Photonic reflects a broader trend in defence innovation, where quantum technologies are increasingly seen as critical to maintaining a technological edge. As Canada ramps up its defence spending, the focus on quantum and AI research could position the country as a leader in next-generation defence solutions. The investments also signal a growing recognition of the need for sovereign technological capabilities, particularly in areas where foreign competition is intense.
For Xanadu and Photonic, the IDEaS funding represents an opportunity to accelerate their research and development efforts while contributing to national security. Their work could lay the groundwork for advancements in quantum computing, energy storage, and secure communications—technologies that will be vital in shaping the future of defence and security. As the IDEaS program continues to evolve, it will likely play a pivotal role in driving innovation and ensuring Canada remains at the forefront of defence technology.