Regional Defence Investment Initiative supports businesses to grow, innovate and scale up for global defence opportunities
March 19, 2026 · St. John's, Newfoundland and Labrador · Atlantic Canada Opportunities Agency (ACOA)
The world is changing rapidly. The international rules-based order is fading, and technological change is expanding the fields of conflict. The Government of Canada is responding by rebuilding and reinvesting in the Canadian Armed Forces and strengthening the defence industrial base.
Through Canada's first Defence Industrial Strategy, the government is aligning long-term defence investments with industrial capability to support Canadian businesses, strengthen supply chains, and reinforce Canada's role as a trusted ally. In Newfoundland and Labrador, the Government of Canada is making targeted investments to help local aerospace and defence companies grow, creating jobs, and building long-term industrial capacity.
Today, the Honourable Sean Fraser, Minister of Justice and Attorney General of Canada and Minister Responsible for the Atlantic Canada Opportunities Agency (ACOA), and the Honourable Joanne Thompson, Minister of Fisheries and Member of Parliament for St. John's East, announced a $16 million federal investment to support five local companies in Newfoundland and Labrador. The investment will help develop and manufacture critical equipment and technologies here in Newfoundland and Labrador, as well as support more than 115 highly skilled jobs and strengthen the following local companies within Canada's defence and security supply chains:
- PAL Aerospace Ltd.
- Virtual Marine Technology Inc.
- Solace Power Inc.
- CoLab AI Inc.
- Rutter Inc.
As a pillar of Canada's Defence Industrial Strategy, the Regional Defence Investment Initiative (RDII) is building a strong, resilient defence industrial base by helping small and medium-sized businesses scale up and adopt advanced technologies. These investments are strengthening Atlantic Canada's industrial capacity, growing Newfoundland and Labrador's role in Canada's defence industry, and ensuring Canada has the capabilities it needs to respond to evolving global security challenges while supporting long-term economic growth.
