Australia announced plans to enhance its missile defense capabilities in response to “significant concerns” regarding China‘s recent test of an intercontinental ballistic missile (ICBM) in the South Pacific. The country will also increase its weapons stockpiles and exports to security partners as the region transitions into a new “missile age.”

In a speech delivered on Wednesday, Minister for Defence Industry Pat Conroy emphasized that Australia is expanding its missile defense and long-range strike capabilities. He highlighted the importance of collaboration with security allies, including the United States, Japan, and South Korea, to promote regional stability.

Conroy articulated the necessity for increased missile capabilities, stating that the strategic rivalry between the United States and China is a central aspect of Australia’s security landscape. He noted that China conducted an ICBM test in September, with the missile traveling over 11,000 kilometers before landing in the Pacific Ocean, northeast of Australia. Conroy remarked that the Indo-Pacific region is on the brink of a new missile era, where missiles are increasingly viewed as “tools of coercion.”

There were considerable concerns raised regarding the recent ballistic missile test, particularly its implications for the South Pacific in light of the Treaty of Rarotonga, which designates the region as a nuclear weapons-free zone, he stated to reporters when asked about the issue. He also mentioned that Australia is equipping its navy destroyer fleet with SM-6 missiles to enhance its ballistic missile defense capabilities.

Earlier this month, Australia revealed a A$7 billion agreement with the United States to procure SM-2 IIIC and Raytheon SM-6 long-range missiles for its naval forces.

Additionally, Australia has committed to investing A$74 billion (approximately $49 billion) in missile acquisition and defense over the next ten years, which includes A$21 billion allocated for the Australian Guided Weapons and Explosive Ordnance Enterprise, aimed at establishing a domestic manufacturing capability.

“We need to demonstrate to potential adversaries that any aggressive actions against Australia would be futile and unsustainable in the event of a prolonged conflict,” Conroy emphasized during his address.

Australia is set to invest A$316 million to initiate local production of Guided Multiple Launch Rocket Systems (GMLRS) in collaboration with Lockheed Martin. This initiative aims to manufacture these rapidly deployable, surface-to-surface weapons for export starting in 2029. According to Conroy, the facility will have the capacity to produce 4,000 GMLRS annually, which represents a quarter of the current global output.

Additionally, France’s Thales will establish the production of 155mm M795 artillery ammunition, utilized in howitzers, at a government-owned munitions facility located in the small Victorian town of Benalla. This will mark the first dedicated forge outside the United States, with production expected to commence in 2028 and the potential to scale up to 100,000 rounds per year.

The ongoing conflict in Ukraine highlighted the demand for 155mm artillery shells, with usage reaching 10,000 rounds daily last year, surpassing European production capabilities. “In a world characterized by supply chain disruptions and strategic vulnerabilities, Australia must not only increase its missile acquisitions but also enhance domestic production,” he stated.

In August, Australia announced plans to co-manufacture long-range Naval Strike Missiles and Joint Strike Missiles with Norway’s Kongsberg Defence in Newcastle, marking the only production site outside of Norway. Furthermore, by the end of the year, the Australian navy will be equipped with Tomahawk missiles, boasting a range of 2,500 km (1,550 miles), thereby significantly expanding the fleet’s operational range.