Sunday, March 30, 2025

Australia pours billions into missile procurement amidst global shortages

March 27, 2025

Australia's plans for developing its own missile component capability will likely be slowed by the Ukraine war and increased European defense spending, even though it is pushing ahead with a multi-billion dollar effort to purchase long-range attack missiles.

Last year, Prime Minister Anthony Albanese committed A$74 billion (46.68 billion dollars) for missile acquisition. This included A$21 billion towards the establishment of a Guided Weapons and Explosive Ordnance Enterprise. His Labor government had reshaped Australia's defence policy to counter China's military buildup.

Australia, in order to protect itself from global supply problems, signed orders with a number of U.S.-based and European defense companies including Lockheed Martin and Kongsberg.

Tim Cahill, Lockheed Martin's vice president of missiles and flight control, said the U.S. firm was in talks with Australia about "long-term and short-term solutions" for hypersonic weapons that Australia wanted to defend its northern border.

Cahill stated in an interview this week at the Avalon Air Show that "Long Range Strike and Hypersonics" - long-range fast strike and very-survivable strike- are clearly priorities.

Defence executives gathered at an event in southern Victoria said that global shortages of missile components and high demand and the need to improve capacity of Australian suppliers meant that Australian components will only be gradually built into local production.

Oyvind Kolset, Executive Vice President for Missiles & Space at Kongsberg, stated that the company plans to create a common supply network between Europe, America and Indo-Pacific when its new factories open in Australia and United States. The workload will be distributed among the various facilities.

Kolset, speaking of the missile production for the Ukraine War, said that "of course, the demand is very high right now. It's challenging to ramp up the rate at which we are currently doing. But at least, we have been working on this for many years."

John Fry, Kongsberg Australia's general manager, stated that the company had also contracted with 10 Australian suppliers to work on possible future installations of its Naval Strike Missiles on the decks of Australian frigates.

He said that some parts of the supply chain for missiles require more industrial capability than Australia currently has.

Making the missile today would not be possible. Kolset said that we can't make the missiles in Norway, either. We rely on American and European suppliers.

Lockheed Martin expects to manufacture Guided Multiple Launch Rocket Systems in Australia by the end of this year.

Cahill cited a global shortage of solid rocket engines as an example.

Cahill stated that Australia's Guided Weapons and Explosive Ordnance Enterprise is strategically important and will bring high-capacity production outside of the United States for first time.

He said that although 60 local companies were identified as potential suppliers of Australian content, the Australian content will be gradually introduced.

Lockheed Martin delivered the first of 42 High Mobility Artillery Rocket Systems, or HIMARS, launcher vehicles that Australia ordered despite the demand for the Ukraine.

In the event of a regional conflict, Australia says that HIMARS-equipped regiments can be transported via C-17 aircraft by island states with defence agreements with Australia.

Australia will choose a second land-based missile system by the end the year. HIMARS and Kongsberg’s Naval Strike Missile mounted onto an Australian Bushmaster truck are the two shortlisted systems.

Kolset, of Kongsberg, said that the United States Marines Corp had already deployed its system to the region. He said that this was the Marines' highest priority program. $1 = 1.5853 Australian dollars (Reporting and editing by Kate Mayberry in Avalon)

(source: Reuters)

Related News

Marine Technology ENews subscription

World Energy News is the global authority on the international energy industry, delivered to your Email two times per week.

Subscribe to World Energy News Alerts.