Australia has announced a substantial $12 billion investment in domestic missile manufacturing as part of a strategic defence overhaul to address growing geopolitical challenges in the Indo-Pacific region. This investment, which equates to A$18 billion, will see Australia producing advanced guided missile systems on its own soil for the first time, reducing reliance on foreign partners and enhancing its defensive capabilities.
Defense Industry Minister Pat Conroy highlighted the urgency of the initiative, pointing to intensifying US-China rivalry as a pressing factor, especially following a recent Chinese ballistic missile test that reached the South Pacific. The plan, revealed on Wednesday in Canberra, marks the latest development in Australia’s ongoing efforts to adapt to what officials have termed the “missile age,” where long-range strike weapons are reshaping global defence postures.
This shift follows Australia’s entry into the Aukus alliance with the US and UK, which will eventually provide Australia with nuclear-powered submarines, further integrating the nation into the Western defence framework in the Pacific. Over the next decade, Australia plans to boost its defense spending by an additional A$50 billion (US$33 billion), a reflection of Canberra’s commitment to addressing the strategic challenges posed by China’s military expansion.
Central to this new strategy is the establishment of manufacturing facilities in Australia to produce critical munitions domestically. Australia will partner with US defence giant Lockheed Martin to build a facility for the production of guided multiple-launch rocket systems (GMLRS) by 2029. This facility, set to be the first of its kind outside the US, will produce 4,000 missiles annually, equivalent to a quarter of the current global production capacity.
Additionally, Australia confirmed a new agreement with French defence contractor Thales to manufacture 155mm M795 artillery shells used in howitzers. Production will take place at a government-owned site in Benalla, Victoria, and is expected to reach 15,000 rounds annually by 2028, with the potential to scale up to 100,000 rounds, creating 550 jobs in the process.
Australia’s increasing involvement in the global defence supply chain has attracted investment from several international defence companies, including partnerships with South Korean, US, and Norwegian firms. Furthermore, a newly established facility in Queensland, jointly operated by Australia’s NIOA and Germany’s Rheinmetall, is producing artillery shells for Ukraine, illustrating Australia’s expanding role in international defence logistics.
In line with this bolstered defence strategy, Australia’s navy will also soon take delivery of its first batch of US-made Tomahawk long-range missiles. These missiles, which will be deployed on Australia’s Hobart-class destroyers, offer a range exceeding 2,500 kilometres—significantly expanding Australia’s strike capabilities and marking a tenfold increase over its current arsenal.
As Australia adapts to shifting geopolitical dynamics, the investments in domestic missile manufacturing and long-range weaponry signal a profound recalibration of its defense posture. By building a resilient, locally sourced munitions supply chain, Australia is not only advancing its own defense capabilities but also solidifying its role as a key contributor to regional security in the Indo-Pacific.
