Ottawa-based Dominion Dynamics will begin manufacturing Tencore's Termit ground drones in Canada as early as next year. This partnership, formalized via a memorandum of understanding in Washington, D.C., combines Ukrainian hardware with Canadian software integration.
Dominion Dynamics to integrate software into Tencore's Termit drones
The partnership focuses on the Termit drone, a treaded, miniature tank-like vehicle designed by the Ukrainian robotics firm Tencore.. According to Bnn Bloomberg and The Canadian Press, these vehicles have already seen active deployment on the front lines in Ukraine, where they perform high-risk tasks such as mine-laying and resupply missions that would otherwise endanger human personnel.
Under the new agreement, Dominion Dynamics will not only manufacture the physical platforms within Canada but will also install proprietary software. The leadership at Dominion Dynamics suggests that this software integration is intended to enhance the decision-making capabilities of field operators and improve the quality of data collection during missions.
The Calgary declaration between Mark Carney and Volodymyr Zelenskyy
This industrial tie-up is a direct result of a broader diplomatic push to merge Canada's technological capacity with Ukraine's real-world combat experience. As reported by The Canadian Press, Prime Minister Mark Carney and Ukrainian President Volodymyr Zelenskyy met in Calgary last month to sign a joint declaration on defence production. This agreement serves as the political framework for joint ventures between the two nations' defence sectors.
The federal government has been actively encouraging Canadian firms to partner with Ukraine's battle-tested defence industry. By bringing the production of the Termit drone to Canada, the government aims to strengthen the domestic defence industrial base while providing critical, sustainable support to Ukraine's ongoing security needs.
From mine-laying to F-35 collaborative platforms
While the Termit project focuses on ground-based logistics and hazards, Dominion Dynamics is simultaneously pursuing a more ambitious aerial project. The company is independently developing an autonomous collaborative platform designed to allow human-guided drones to operate in tandem with advanced fighter jets, specifically mentioning the F-35 and Gripen fighters.
This dual-track approach—producing ground drones for immediate utility while developing "loyal wingman" style aerial drones—reflects a global shift toward autonomous collaborative combat. By diversifying its portfolio, Dominion Dynamics is positioning itself as a provider of both attrition-based robotics and high-end situational awareness tools for modern air forces.
The missing details on Canadian production scale and funding
Despite the announcement of the memorandum of understanding, several critical operational details remain unverified. the source does not specify the exact locations of the new manufacturing facilities within Canada, nor does it provide a concrete number for the "new manufacturing and engineering jobs" expected to be created.
Furthermore , it remains unclear whether the production of the Termit drones will be funded through direct federal subsidies, private investment, or procurement contracts from the Canadian Armed Forces. While the partnership is framed as a strategic success, the financial architecture supporting the transition from a Washington agreement to a Canadian factory floor has not yet been disclosed.
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