Australia has terminated a multi-billion dollar military satellite initiative with Lockheed Martin, as announced by the Department of Defence on Monday. The military will now redirect its efforts towards developing a multi-orbit system.

Last year, Lockheed Martin Australia was selected as the preferred bidder for the Geostationary Earth Orbit (GEO) satellite communications system, which was intended to establish Australia’s first sovereign-controlled satellite communication network across the Indo-Pacific region.

The Department of Defence confirmed the cancellation of the single orbit satellite project with Lockheed Martin in its statement. It noted that due to advancements in space technologies and the changing landscape of threats in space since the project’s inception, a single orbit GEO-based satellite communications system would not align with strategic priorities. Consequently, Australia will focus on enhancing its multi-orbit capabilities to bolster the resilience of the Australian Defence Force.

In a recent radio interview with the Australian Broadcasting Corporation, Prime Minister Anthony Albanese stated that although Australia’s defence budget is on the rise, his administration is focusing on prioritizing its acquisitions.

When the Lockheed Martin project was unveiled last year, officials described it as a “multi-billion dollar” agreement; however, the Defence statement released on Monday did not specify the value of the cancelled project.