Australia has announced a major investment in missile procurement and domestic production in response to increasing global tensions and supply chain disruptions. The government, led by Prime Minister Anthony Albanese, has allocated A$74 billion (approximately $46.68 billion) towards missile acquisition. Of this amount, A$21 billion is dedicated to establishing the Guided Weapons and Explosive Ordnance (GWEO) Enterprise within the country. This initiative aims to strengthen national defense capabilities and address component shortages exacerbated by the ongoing conflict in Ukraine and rising European defense spending.

To mitigate supply chain issues, Australia is working with major defense contractors, including Lockheed Martin, Kongsberg, and Raytheon. Lockheed Martin's Tim Cahill emphasized the importance of developing long-range and hypersonic missiles to protect Australia’s northern borders. However, due to global shortages in missile components and the need to enhance the capabilities of local suppliers, the integration of Australian-made components is expected to be a gradual process.

As part of efforts to boost domestic missile production, Australia plans to establish a facility in collaboration with Lockheed Martin. This facility will have the capacity to produce up to 4,000 guided multiple-launch rocket systems annually, with operations expected to begin later this decade. Additionally, the government is working with Thales to manufacture 155mm artillery shells at a facility in Benalla, Victoria. Initial production is set at 15,000 rounds per year by 2028, with the potential to scale up to 100,000 annually. These initiatives aim to reduce dependence on international suppliers and enhance Australia’s self-sufficiency in defense manufacturing.

The GWEO plan highlights the government’s commitment to rapidly advancing missile manufacturing capabilities and expediting the acquisition of long-range strike weapons over the next decade. This effort is part of a broader strategy to transform the Australian Defence Force into an integrated and focused force capable of safeguarding national security in an increasingly complex geopolitical environment.

Australia’s massive investment in missile procurement and domestic production reflects a proactive approach to strengthening its defense infrastructure and addressing global supply chain challenges. This move signals the country’s readiness to adapt to evolving security threats while ensuring a stable and reliable supply of critical defense equipment.