Australia Expands Missile and Ammunition Production to Counter China

Australia aims to reduce its reliance on imported munitions and missiles by developing domestic manufacturing capabilities, planning to invest up to 18 billion AUD over the next decade. In partnership with Lockheed Martin, the country will produce HIMARS missiles starting in 2029. Additionally, Australia intends to manufacture 155mm artillery shells and relies on international expertise due to its diminished industrial base. The push for domestic production is driven by perceived threats from China and strategic defense reviews emphasizing modern warfare’s reliance on long-range precision weapons.

Australia aims to reduce its dependence on imported munitions and rockets by developing its own production capabilities. The country plans to invest up to 18 billion Australian dollars, approximately 10 billion Swiss francs, over the next decade to enable the domestic manufacturing of modern guided missiles. This announcement was made by Pat Conroy, the Minister for Defence Industry, on Wednesday in Canberra.

First Production of Himars Rockets Outside the USA

First Production of Himars Rockets Outside the USA

In collaboration with the American defense contractor Lockheed Martin, Australia is set to begin producing rockets for the Himars multiple launch rocket system starting in 2029. Australia has placed an order for 42 Himars systems from Lockheed Martin, expected to be delivered between 2025 and 2027.

This new facility will be the first outside the USA to manufacture Himars rockets, Conroy stated. The planned annual output of 4,000 units will account for a quarter of the current global production.

The establishment of domestic rocket production follows the Strategic Defence Review, which has directed Canberra to realign its defense policies since last year. This review highlights that we are in a “missile age” where modern warfare is characterized by the widespread use of long-range precision weapons. As a result, Australia’s geographical isolation, once a natural defense advantage, has diminished.

Long-range missiles are critical for deterring adversaries, Conroy noted in an opinion piece for “The Australian”: “They allow one to threaten an opponent’s forces from greater distances. However, procuring these weapons often takes a long time due to limited global production capacities that cannot be quickly increased. Until now, Australia has been unable to produce these weapons domestically.”

The perceived threat from China is driving Australia’s military buildup. Australia is concerned that Beijing is attempting to control maritime routes essential for its economic prosperity and its relationship with its security partner, the USA. “The strategic competition between the United States and China is a central feature of Australia’s security environment,” Conroy explained during the announcement of the new plans to the media.

Australia Significantly Expands Its Defense Industry

Australia Significantly Expands Its Defense Industry

Alongside missile production, Australia intends to manufacture its own 155 mm artillery ammunition, which is used by the American-made M777 howitzers. The Australian Army has 48 such guns in its arsenal, having donated 6 to Ukraine.

The French defense firm Thales will establish the production line at a government munitions factory in Victoria. By 2028, they aim to produce 15,000 shells, with a goal of ramping up production to 100,000 units per year.

Currently, the German company Rheinmetall, in collaboration with the local firm NIOA, produces 155 mm cartridge cases in Australia. These cases are shipped to Germany, where Rheinmetall fills them with explosives. Most of them are subsequently sent to Ukraine.

According to Conroy, these artillery shells will differ from those produced for Europe. He stated that Australia does not use the artillery type made for Europe.

Australia Relies on Foreign Expertise

Australia Relies on Foreign Expertise

The newly announced defense programs are part of the Australian government’s efforts to enhance its military capabilities. An integral factor in this process is the establishment of a domestic defense industry. The country has heavily relied on foreign expertise due to the gradual decline of its industrial capacity, including the complete disappearance of its automotive industry.

Recently, Canberra has successfully attracted several international defense companies to invest in the country. In August, it was announced that the Norwegian firm Kongsberg, with the support of the Australian government, would be building a factory for missile production.

From 2026, the Naval Strike Missile (NSM) and Joint Strike Missile (JSM) will be manufactured there. The NSM will be deployed on ships to target other vessels and land objectives, while the JSM will be used by fighter jets against land and maritime targets. Both missiles have ranges exceeding several hundred kilometers. The Australian Navy already utilizes the NSM, and the Air Force is considering deploying the JSM, which can be equipped on various aircraft types.

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