Australia has announced collaborative agreements with French defense firm Thales and American arms giant Lockheed Martin. The joint initiatives focus on developing domestic manufacturing capabilities for both artillery ammunition and guided rocket systems. This historic move is aimed at enhancing Australia’s weapon stockpiles, supporting allies, and cementing Australia’s place in a shifting strategic landscape increasingly influenced by tensions between the United States and China.
Australia’s Minister for Defence Industry, Pat Conroy, delivered a pivotal address to the National Press Club on Wednesday, detailing the motivations and expectations behind Australia’s new defense ventures. Conroy emphasized Australia’s pressing need to increase its missile defense systems and long-range strike capacities in response to the shifting balance of power in the Indo-Pacific region, where heightened tensions between the U.S. and China have added complexity to Australia’s security environment.
Conroy stated, “Strategic competition between the United States and China is a primary feature of Australia’s security environment,” underscoring the country’s need to adapt to a new era in missile technology and capabilities in which adversaries wield missiles not only as weapons but as tools of intimidation and geopolitical influence.
Although Conroy’s speech did not specifically reference China’s recent weapons tests, the developments have underscored the need for increased security measures. In September, China successfully test-fired an intercontinental ballistic missile (ICBM) that traveled over 11,000 kilometers and landed in the Pacific Ocean, northeast of Australia. While the test wasn’t mentioned explicitly in Conroy’s remarks, the implication of China’s expanding missile capabilities was clear, with Conroy noting that the Indo-Pacific was now “on the cusp of a new missile age.”
According to Conroy, the omnipresent threat posed by missiles remains constant, whether or not they are actively deployed. This reality has compelled Australia to invest heavily in new defense systems that ensure hostile acts against the nation would not only fail but could not be sustained in a protracted conflict. This shift in defense posture is seen as essential to protecting Australia’s strategic interests and asserting the nation’s readiness to respond to potential threats.
The new partnerships with Lockheed Martin and Thales represent Australia’s commitment to establishing a sovereign defense manufacturing capability. The government plans to allocate A$316 million to create a domestic production line for Guided Multiple Launch Rocket Systems (GMLRS) in collaboration with Lockheed Martin, a surface-to-surface missile technology designed for rapid deployment. This advanced weapons system is not only intended to enhance Australia’s security but will also be available for export to key security partners, including the United States.
The forthcoming GMLRS facility, expected to begin production by 2029, will have an annual output capacity of 4,000 rockets—approximately one-quarter of the world’s current production. This substantial output underscores Australia’s ambition to contribute meaningfully to the global supply chain of guided rockets, addressing both domestic security needs and the demand from allied nations.
Additionally, Thales will oversee the establishment of an Australian manufacturing line for 155mm M795 artillery ammunition at a government-owned site in Benalla, Victoria. This production line will become the first of its kind outside the United States, underscoring the significance of the Australia-Thales partnership in expanding global defense manufacturing capabilities. By 2028, the facility aims to produce up to 100,000 rounds of 155mm ammunition per year. The artillery ammunition, essential for use in howitzers, has seen unprecedented demand due to the conflict in Ukraine, which last year consumed 10,000 rounds per day—outstripping Europe’s production capacity.
Australia’s defense strategy has evolved considerably, with greater emphasis on establishing a resilient, autonomous defense industrial base. Conroy cited the global disruptions in supply chains and the “strategic fragility” of relying solely on imported weapons as critical reasons for boosting local production capabilities. “In a world marked by supply chain disruption and strategic fragility, Australia needs not only to acquire more missiles but to make more here at home,” Conroy emphasized. The development of a self-sufficient defense manufacturing industry is seen as vital to securing Australia’s future in an increasingly unpredictable global landscape.
To date, Australia has pledged approximately A$74 billion (US$49 billion) towards missile acquisition and missile defense over the next decade. This figure includes A$21 billion earmarked for the Australian Guided Weapons and Explosive Ordnance Enterprise, a newly-formed domestic manufacturing body poised to oversee Australia’s missile production. By investing in domestic manufacturing, Australia is looking to alleviate dependency on international suppliers and respond more effectively to potential supply shortages during periods of heightened demand.
The partnerships with Thales and Lockheed Martin are part of a broader network of defense collaborations aimed at fortifying Australia’s strategic alliances. In August, the Australian government revealed plans to co-manufacture long-range Naval Strike Missiles and Joint Strike Missiles in partnership with Norway’s Kongsberg Defence. This new manufacturing facility, located in Newcastle on Australia’s east coast, will become the only production site outside of Norway, further solidifying Australia’s position as a reliable ally capable of contributing significantly to collective defense efforts.
Earlier this month, Australia announced a landmark A$7 billion agreement with the United States to procure SM-2 IIIC and SM-6 long-range missiles from Raytheon for the Australian navy. This procurement is expected to significantly boost Australia’s maritime defense capabilities, especially in light of the anticipated delivery of Tomahawk missiles by the end of the year, which will grant the navy a striking range of 2,500 kilometers—ten times its current range.
Australia’s defense industry expansion is motivated not only by the need for self-sufficiency but also by the goal of becoming a trusted supplier to allied nations. The ability to export GMLRS and other critical defense products places Australia in a stronger strategic position, enabling it to provide essential resources to partners such as the United States. This shift from merely importing to producing and exporting military technology represents a milestone for Australia, enhancing its relevance and value within the international defense community.
As global demand for advanced weapons technology rises, Australia’s investment in defense production promises not only economic returns but an elevated role in international security. The newly-established manufacturing capabilities will allow Australia to rapidly scale up production in response to emerging conflicts, a quality that is increasingly sought after in today’s fast-evolving global security landscape.
Conroy’s address highlighted Australia’s proactive stance as it prepares for the geopolitical challenges of the future. The nation’s investments in guided rocket systems and artillery ammunition production are part of a broader vision to ensure that potential adversaries recognize the risks of engaging in conflict with Australia. “We must show potential adversaries that hostile acts against Australia would not succeed and could not be sustained if conflict were protracted,” Conroy asserted, emphasizing the deterrent effect Australia’s defense posture aims to achieve.
Australia’s ongoing investments in missile and defense capabilities come amid widespread military modernization efforts among Indo-Pacific nations, which are keenly aware of the region’s evolving security landscape. By equipping itself with an enhanced defense manufacturing base, Australia is not only safeguarding its own territory but also contributing meaningfully to the collective defense frameworks that support regional stability.
As Australia moves forward, the establishment of domestic missile production capabilities with global partners positions the nation as a forward-looking, self-reliant player in the international defense arena. In an era marked by rising tensions, Australia’s defense initiatives underscore a commitment to resilience, readiness, and responsibility towards itself and its allies.
