Lockheed Martin is establishing a production model in Australia for solid rocket motors and explosives that will serve markets in Europe and the Middle East, executives disclosed to reporters today.
Partnership with Thales Australia
The Australian division of the American defense giant is collaborating with Thales Australia to develop solid rocket motors for advanced artillery systems, including HIMARS, GMLRS, and other munitions such as the SM-6 missiles and PrSM. This initiative falls under the auspices of Australia’s Guided Weapons and Explosive Ordnance (GWEO) enterprise, with Thales overseeing manufacturing, storage, distribution, and maintenance operations across the country.
“There is a fundamental shortage of propellants writ large around the world,” remarked James Heading, Lockheed Martin Australia’s director of programs in the Strategic Capabilities Office. This scarcity underscores the urgency of the project.
Significant Government Investment
The Australian government is committing up to $21 billion AUD (approximately $14.1 billion USD) to the broader GWEO initiative, with an active request for information (RFI) issued to the industry to invite additional players into the solid rocket motor production sector. Notably, Anduril Australia has shown interest in participating in this emerging market.
Lockheed Martin and Thales, who forged their partnership in September, plan to utilize existing production facilities for propellants and munitions located in Mulwala, New South Wales, and Benalla, Victoria, managed by Thales.
Global Production Expansion Plans
Looking beyond Australia, Lockheed Martin is also assessing potential cutting-edge production facilities in other parts of the world. „What we’re doing here is definitely a great model,” said Tim Cahill, Lockheed Martin’s executive vice president for missiles and fire control in the U.S. He noted that each country presents its unique considerations, including regulatory frameworks and existing operational footprints.
When asked about future production targets, Cahill identified Europe as the next priority, followed by the Middle East. While he refrained from indicating specific locations within Europe under consideration, he hinted at a possible announcement in collaboration with a European country later this year, spurred by the increased demand for solid rocket motors driven by the ongoing war in Ukraine.
Australia’s Strategic Defense Needs
Australia’s push for enhanced munitions production is fueled by concerns over the security of vital sea lanes in the event of military conflict. This underscores the necessity for Canberra to ensure it has substantial stockpiles of munitions to support defense efforts and to resupply allies in the region.
“Why do we need more missiles? Strategic competition between the United States and China is a primary feature of Australia’s security environment,” stated Pat Conroy, Australia’s minister for defense procurement. He revealed plans for a $316 million AUD (approximately $207 million USD) investment to establish a local factory dedicated to producing Lockheed Martin’s Guided Multiple Launch Rocket Systems (GMLRS) slated to begin operations in 2029. This facility is designed to produce 4,000 missiles annually, representing about one-quarter of current global production levels.
In addition to GMLRS, Australia has also committed to joint manufacturing of Naval and Joint Strike Missiles in collaboration with Norway’s Kongsberg Defense at a facility in Newcastle, the only production site outside Norway.
As Lockheed Martin expands its capabilities and partnerships in Australia and beyond, it positions itself as a key player in fulfilling the rising demand for advanced munitions critical to global security.
