Australia invests billions in missile acquisition amid worldwide shortages

The ongoing conflict in Ukraine and the rise in European defense expenditures are expected to hinder Australia‘s ambitions to develop its own missile component capabilities, even as the nation moves forward with a multibillion-dollar initiative to procure long-range strike missiles. Last year, Prime Minister Anthony Albanese committed A$74 billion (approximately $46.68 billion) for missile procurement, which includes A$21 billion dedicated to establishing a Guided Weapons and Explosive Ordnance Enterprise within Australia. This investment is part of the Labor government’s strategy to adapt the country’s defense posture in response to China’s military expansion.

To mitigate potential global supply chain challenges, Australia has placed numerous orders with U.S. and European defense firms, such as Lockheed Martin, Kongsberg, and Raytheon. Tim Cahill, President of Lockheed Martin’s Missiles and Fire Control division, indicated that the company is engaged in talks with Australia regarding both “long-term and short-term solutions” for hypersonic missiles, which are intended to bolster the defense of Australia’s northern borders. “Long-range strike and hypersonics—rapid long-range strikes that are highly survivable—are clearly a priority,” Cahill stated during an interview at this week’s Avalon Air Show.

At the event in Victoria, defense industry leaders noted that global shortages of missile components, coupled with high demand and the necessity to enhance the capabilities of Australian suppliers, would result in a gradual integration of local components into domestic production. Kongsberg of Norway aims to establish a unified supply chain across Europe, the United States, and the Indo-Pacific region as new manufacturing facilities in Australia and the U.S. become operational, with workloads shared among these sites, according to Oyvind Kolset, Executive Vice President of Missiles & Space. “The demand is exceptionally high right now, and it is challenging to scale up production at our current pace, but we have been preparing for this for several years,” Kolset remarked, referencing missile production efforts related to the Ukraine conflict.

Kongsberg Australia’s general manager, John Fry, announced that the company has engaged 10 Australian suppliers for potential future installations of its Naval Strike Missile on Australian frigates. He noted that certain components of the missile supply chain necessitate more industrial capacity than what is currently available in Australia. Kolset added, “Producing the missile from the ground up with our current capabilities is not feasible. This is also true for Norway, as we depend on suppliers from the U.S. and Europe.”

In a related development, Lockheed Martin anticipates manufacturing Guided Multiple Launch Rocket Systems (GMLRS) in Australia this year. However, Cahill pointed out that the supply of solid rocket motors required for GMLRS in the U.S. is “insufficient,” highlighting global shortages. He emphasized the strategic significance of Australia’s Guided Weapons and Explosive Ordnance Enterprise, which will enable high-capacity production outside the U.S. for the first time.

While 60 local companies have been identified as potential suppliers, Cahill indicated that the integration of Australian content will be gradual. Lockheed Martin has already delivered the first two of the 42 High Mobility Artillery Rocket Systems (HIMARS) launcher vehicles ordered by Australia, despite ongoing demand in Ukraine. Australia has stated that army regiments equipped with HIMARS can be airlifted by C-17 aircraft to neighboring island nations with defense agreements in the event of regional conflicts.

By the end of the year, Australia plans to select a second order of land-based missile systems, with HIMARS and Kongsberg’s Naval Strike Missile mounted on an Australian-made Bushmaster truck being considered. Kolset mentioned that the United States Marine Corps is already deploying its system in the region, stating, “This is their highest priority program.”