Australia’s Minister for Defense Acquisition, Pat Conroy, announced a series of significant spending decisions aimed at enhancing the country’s capacity to build and purchase longer-range precision missiles, marking what he describes as the start of a „new Indo-Pacific missile age.”
Conroy addressed the National Press Club, emphasizing the necessity for increased missile capabilities due to the strategic competition between the United States and China, which is a defining element of Australia’s security landscape. The most immediate initiative includes a commitment of $316 million AUD (approximately $207 million USD) to establish a local factory for producing Lockheed Martin’s Guided Multiple Launch Rocket Systems (GMLRS), with operations expected to start in 2029. The facility aims to produce 4,000 missiles annually, representing about a quarter of the present global production rate. “Producing GMLRS missiles in Australia is the stepping stone towards local production of more advanced, longer-range strike weapons in the future — local production that is essential to our sovereignty and our security,” Conroy explained.
Additionally, Australia has partnered with Norway’s Kongsberg Defense to manufacture Naval and Joint Strike Missiles in Newcastle, the only manufacturing site outside Norway. The JSM is designed to be carried internally by the F-35 to maintain its stealth capabilities.
In a further demonstration of its commitment to domestic manufacturing, BAE Systems Australia has secured a $160 million contract to triple the production of the Passive Radio Frequency Sensor (PRS) used in the JSM. However, BAE noted that, at least initially, these sensors would primarily be incorporated into missiles ordered by the US Air Force, Japan, and other nations.
Conroy also revealed plans to announce a new contract for the production of 155mm artillery shells, stating it would be finalized soon. Thales Australia has indeed won the contract to produce these shells—a move aimed at enhancing Australia’s resilience against supply chain disruptions. This contract will involve constructing a new forge for shell production. Notably, Australian-owned NIOA had been competing for this contract but operates its own forge solely for producing shells for export to Germany through a joint venture.
The increasing global demand for artillery shells highlights the Australian government’s commitment to cultivating a more self-sufficient manufacturing capability, reducing reliance on international supply chains.
However, the government’s announcements have faced criticism from opposition defense expert Andrew Hastie, who claimed that many details regarding the GMLRS and 155mm artillery shells remain unclear. Hastie expressed concern over the lack of specifics on costs and operational timelines, calling the government’s approach inadequate. “We must now wait for the Albanese Government to identify a site sometime next year for the facility which won’t be operational until 2029. But the clock is ticking and we have no time to waste,” he said.
On the broader geopolitical front, Conroy was also questioned about a recent Chinese ICBM test that traveled over 11,000 kilometers before landing in the Pacific Ocean near Australia. This test marked China’s first such missile launch in over four decades, stirring further concerns regarding regional security dynamics.
