Historic MoU Strengthens Defense Ties and Boosts Local Industry Participation
Australia has formalized its commitment to advanced missile technology through a Memorandum of Understanding (MoU) with the United States for joint development and future onshore production of the Precision Strike Missile (PrSM). The agreement signifies a strategic step in enhancing Australia’s long-range strike capabilities and deepening military cooperation with the US.
Key Details of the MoU and Strategic Implications
The Australian Defence Force (ADF) now has access to PrSM munitions, with the MoU establishing the missile as a cooperative program between the two nations. The agreement was signed Friday by Australian Deputy Prime Minister Richard Marles and US Secretary of Defense Pete Hegseth during the Shangri-La Dialogue in Singapore.
This pact also paves the way for Australian industry to participate in the PrSM supply chain, including the manufacturing of components and sub-systems locally. Negotiations to define specific manufacturing roles are anticipated to begin later this year, signaling Australia’s intent to develop a domestic missile industry.
Enhancing Deterrence and Strategic Capabilities
Marles emphasized that the collaboration will bolster deterrence against potential threats and ensure the ADF is equipped to meet evolving strategic challenges. “This team-up will enable deterrence against potential threats and ensure the Australian Defence Force is equipped to meet our strategic circumstances and keep Australians safe,” he stated.
Defense Industry Minister Pat Conroy highlighted that the MoU aligns with Australia’s 2024 national defense strategy, which prioritizes the rapid acquisition of advanced land and maritime strike systems. “Through this cooperative program, the Australian Army will contribute to and acquire the latest technology required to counter current and future threats,” Conroy added.
Significant Investment and Operational Impact
Australia is investing approximately AUD 310 million (around USD 202 million) over ten years to become a full partner in the PrSM program. An additional AUD 150 million (about USD 98 million) will be spent over the next five years to procure an initial batch of the missile.
The acquisition will enable the Australian Army to establish its first long-range fires regiment, equipped with the M142 High Mobility Artillery Rocket System (HIMARS), which is capable of firing the PrSM. Australia received its first HIMARS vehicle in March, demonstrating its growing long-range firepower capacity.
Broader Defense Modernization and Local Manufacturing
The PrSM, intended to replace the MGM-140 Army Tactical Missile System, is a superior next-generation long-range precision-strike missile currently under development by the US Army. As part of its Guided Weapons and Explosive Ordnance (GWEO) enterprise, Australia plans to spend AUD 4.1 billion (approximately USD 2.7 billion) on acquiring additional long-range strike capabilities and manufacturing munitions domestically.
So far, Australia has procured 200 Tomahawk cruise missiles for its Hobart-class destroyers under GWEO. The country is also acquiring advanced missiles such as the AGM-158B JASSM-ER and the AGM-88E AARGM-ER for its F-35A Lightning II fighters, EA-18G Growler, and F/A-18F Super Hornet aircraft.
Developing an Advanced Munitions Industry
Furthermore, Australia is constructing two dedicated factories to produce guided weapons, supplementing existing facilities for bombs like the BLU-111. These efforts underline Australia’s strategic goal of building a self-reliant and technologically advanced defense industry, ensuring long-term sovereignty over key missile and munition systems.
