Australia’s Guided Weapons and Explosive Ordnance (GWEO) program is making progress, but diversifying suppliers and securing a skilled workforce remain major challenges. Launched in 2024, the initiative aims to establish domestic production of guided missiles and other munitions.
Australia’s 2026 National Defence Strategy sets aside A$26 billion to A$36 billion—about US$18.16 billion to US$25.14 billion—for GWEO. The strategy and its accompanying investment plan provide few details on how that funding will be allocated.
Local production backed by international partners
Official partners include the Australian arms of Kongsberg, Thales, Lockheed Martin and Raytheon. Two local companies have also been appointed as Enterprise and Support Partners.
Australia has test-fired locally produced Guided Multiple Launch Rocket System (GMLRS) rockets and identified domestic companies to manufacture GMLRS components. It has also reached an agreement to develop and produce the Precision Strike Missile.
The country plans to manufacture Kongsberg’s Naval Strike Missile and Joint Strike Missile locally. Australia is also due to become the first export customer for the AIM-260 Joint Advanced Tactical Missile after developing and testing the weapon.
Diversifying suppliers remains a priority
The Australian Strategic Policy Institute (ASPI) has warned that a large share of the munitions planned under GWEO are U.S.-origin systems, while American manufacturers are already struggling to meet demand.
ASPI supports broadening Australia’s supply base and has identified South Korea, the United Kingdom and Germany as potential partners for technology transfers and the supply of components or complete weapons. A wider range of suppliers could reduce reliance on U.S. manufacturers.
Skilled-worker shortages could slow the program
A shortage of specialist workers presents another risk. The United States Studies Centre (USSC) at the University of Sydney described Australia’s industrial workforce planning as “largely neglected” and urged the government to improve coordination among industry, state governments and training providers.
The report notes that technical workers may be reluctant to relocate for personal or practical reasons. GWEO facility locations should therefore be decided more quickly and coordinated between federal and state governments.
Lavina Lee, the USSC’s director of foreign policy and defence, said sustained demand signals and stronger coordination are needed to attract and train the specialists required by the program.
Despite these concerns, ASPI says GWEO is meeting milestones that help close capability gaps and build a domestic industrial base. Before leaving his post as head of the GWEO Group in September, Air Marshal Leon Phillips highlighted efforts to strengthen munitions stocks, extend Australia’s strike reach and build local manufacturing capability.
Kongsberg and Zone 5 explore Australian missile production
The latest development was announced at the Land Forces exhibition in Perth, where Kongsberg Australia and Zone 5 Technologies signed a memorandum of understanding to explore local manufacturing opportunities.
The companies will consider collaborating on affordable, mass-producible long-range strike, air-defence and counter-drone missiles for Australia and New Zealand. The agreement establishes a framework for cooperation on local manufacturing and supply chains, building on Kongsberg’s expanding weapons-production capability in Australia.
Kongsberg Australia Managing Director John Fry said recent events in the United States and Europe had underscored the need to produce capable, affordable weapons quickly and at scale. Resilient supply chains and industrial capacity, he added, are critical to sustaining capability when it matters.
Zone 5 produces the AGM-188 Rusty Dagger long-range strike missile, which has reportedly been used by Ukraine, as well as the White Spike counter-drone air-defence missile.
