The Canadian government has supported aerospace and space innovation to strengthen the country’s security, boost prosperity, and enhance sovereign capabilities.

Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister in Charge of the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), announced a $14.5 million investment to accelerate the growth of two leading Canadian companies, strengthen their competitiveness in the defence sector, and contribute to the development of Canadian sovereign capabilities in aerospace.

“Kepler Communications and Dishon Limited are strong examples of Canadian innovators. By investing in these companies, building sovereign capabilities at home while ensuring Canada remains a strong, trusted partner in the rapidly evolving space and defence landscape.”
Evan Solomon

A significant portion of the funding $7 million has been allocated to Kepler Communications Inc., a Toronto-based satellite telecommunications firm specializing in low Earth orbit (LEO) satellite systems. This investment will support the advancement of the company’s Tranche 1 (T1) satellite engineering and accelerate commercialization efforts.

According to the statement, Kepler has already made notable progress, including the successful design, deployment, and operation of satellites capable of delivering low-latency, high-speed, and resilient communications between space and Earth.

In January 2026, Kepler launched Tranche 1 of its network, consisting of 10 optical communications satellites. The company is now focusing on demonstrating advanced capabilities such as Arctic communications, customer connectivity trials, and achieving full operational readiness.

The new funding however, is intended to help transition these technologies from development to market-ready applications, while also positioning Kepler to contribute to Canada’s Defence Enhanced Surveillance from Space Project and support allied missions. Kepler’s core activities include developing optical communications systems, IP mesh networking, and on-orbit compute and storage capabilities that support real-time data relay, mission critical communications, and distributed processing for defence, security, and government customers.

Also, $7.5 million has been earmarked for Dishon Limited, a Vaughan-based advanced manufacturing company with a long-standing presence in the aerospace sector.

This will enable Dishon to scale its production capacity at a newly established 30,000-square-foot facility through the adoption of cutting-edge machining and precision measurement technologies. This expansion is expected to increase the company’s ability to produce complex, high-precision components required by major aerospace clients.

The Federal Economic Development Agency for Southern Ontario further indicated that, the “Government of Canada remains focused on building a strong and innovative aerospace and space industry that supports national security, drives economic growth, and delivers real benefits for Canadians.”

On a broader perspective, the announcement shows the significance of Southern Ontario’s defence ecosystem, which comprises around 900 defence-capable enterprises that employ 81,000 people. In 2022, the sector generated $14.2 billion in sales and contributed $9.6 billion to the Canadian economy. With capabilities in aircraft, automotive technology, cybersecurity, robotics, and artificial intelligence, the area is well-positioned to capitalise on growing military prospects.

Julie Dzerowicz, Member of Parliament for Davenport said, this development showcases the cutting‑edge work happening across the Greater Toronto Area, “where companies like Kepler Communications and Dishon Limited are creating skilled jobs and building capabilities that strengthens Canada’s security and supports our future in space.” “These investments will help these companies grow, while strengthening Canada’s defence supply chain ensuring that our country has reliable, homegrown sovereign capabilities,” he explained.

Strengthening Canada’s Sovereign Capabilities in Space

In strengthening Canada’s sovereign capabilities in space, the government introduced the Regional Defence Investment Initiative (RDII), a national $357.7 million program designed to help businesses integrate into domestic and global defence supply chains.

The Government of Canada has also taken additional steps to reinforce its defence posture, including achieving the North Atlantic Treaty Organization’s 2% GDP defence spending target for the 2025–26 fiscal year and committing $200 million toward core infrastructure for a Canadian-owned spaceport.

Furthermore, in the 2025–2026 fiscal year, the Canadian government met the North Atlantic Treaty Organization’s (NATO) 2% of GDP defence spending objective, which marks a major turning point in the country’s attitude to collective security and national defence.

The government’s investment in Dishon, according to Ilan Dishy, President of Dishon Limited, is crucial to the company’s ability to compete with the world’s biggest rocket manufacturers, the expanding commercial aircraft sector, and the leading manufacturers of cutting-edge technologies. “We are grateful to FedDev and for the amazing workforce we’ve been able to attract here in Vaughan,” he added.

Mina Mitry, Chief Executive Officer, Co-Founder, Kepler Communications Inc also expressed appreciation for the government support and highlighted that, “this investment will support work underway for our Tranche 1 optical network. Kepler will also leverage this investment to support future intelligence, surveillance, and reconnaissance requirements with the Department of National Defence.”