Australia Inks Deal With Lockheed Martin to Manufacture Missiles

A M142 High Mobility Artillery Rocket System (HIMARS) fires a missile in Australia's Northern Territory. Photo courtesy of Australian Department of Defence

Australia’s defence industry will receive a $37.4 million (US$24.74 million) boost after its Defence Department signed an agreement with Lockheed Martin Australia to manufacture Guided Multiple Launch Rocket System (GMLRS) missiles.

The missile’s production is set to start in 2025 and forms part of a $4.1 billion package activated after 2023’s Defence Strategic Review called for reforms to the Department’s “posture and structure,” which include producing long-range strike systems and munitions locally.

The growing presence of Beijing’s military in the Indo-Pacific highlighted the need for investment in nuclear-powered submarines by Australia, along with what the Defence Department called “changes in capability” for its forces in the region.

In November last year, HMAS Toowoomba encountered a People’s Liberation Army—Navy (PLAN) destroyer while clearing fishing nets from its propellers in international waters, claimed both by Japan and China.

The PLAN vessel deployed a sonar blast, used to detect submarines, which injured the Australian Navy divers.

Lockheed Martin Australia is a wholly-owned subsidiary of the U.S. Lockheed Martin Corporation, and has its head office in Canberra, with other sites in Adelaide and Melbourne.

They have supplied the Australian Defence Force with Javelin anti-tank missiles and the Navy with the MH-60R Seahawk, known as “The Submarine Hunter,” as well as naval aviation combat systems.

Along with the initial batch of GMLRS missiles, the Australian government announced the acquisition of long-range Precision Strike Missiles. The manufacture of the missiles is seen as the first step towards larger-scale production in Australia.

(L–R) Australian Defense Industry Minister Pat Conroy, Australian Deputy Prime Minister Richard Marles, and head of the Nuclear Powered Submarine Task Force Vice Adm. Jonathan Mead speak to the media during a press conference at Parliament House in Canberra, Australia, on March 14, 2023. Lukas Coch/AAP Image via AP

Acting Defence Minister Pat Conroy said the contract was part of the Albanese Labor government’s commitment to reprioritising defence capabilities in line with the Defence Strategic Review, including developing the ADF’s ability to precisely strike targets at longer range using land-based maritime strike weapons.

Traditionally, Australia has focused its investments on fighter aircraft, but a policy pivot towards putting money into long-range missile capabilities after the previous Scott Morrison-led government set up the Guided Weapons and Explosive Ordnance Enterprise (GWEOE) in 2021, earmarking $1 billion for the so-called Sovereign Weapons Enterprise.

The enterprise, continued by the current Labor-led government features collaboration between Lockheed Martin Australia and Raytheon Australia, the largest U.S.-owned defence contractor operating locally.

Mr. Conroy added the deal was an “important first step towards the establishment of domestic guided weapons manufacturing in Australia (and) will complement the acquisition of long-range precision strike capabilities and strengthen the ADF’s ability to protect Australia and its interests.”

Minister Conroy also trumpeted the alliance between Australia and the United States on weapons production, saying the deal was a “clear demonstration of the ongoing collaboration between Australia and the United States on Australia’s Guided Weapons and Explosive Ordnance Enterprise—a key outcome of the Australia-United States Ministerial Consultations in July 2023.”

Deputy Prime Minister Richard Marles said the contract would create jobs for Australians.

“These are important milestones which will see Australia gain the technology we need to establish a sovereign industry, providing opportunities for a highly-skilled workforce.”