Australia’s Missile Production Initiative

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Australia is set to embark on a significant milestone in its defense capabilities, revealing plans to commence local production of missiles as early as next year.

The nation has entered into a A$37 million ($24.5 million) contract with renowned American munitions corporation Lockheed Martin Corp. Under this collaboration, a preliminary batch of missiles is slated for construction as early as 2025, with ambitions to scale up mass production by the close of the decade, as announced by Acting Defence Minister Pat Conroy during a press briefing in Canberra on Tuesday.

The overarching objective of this missile development initiative aligns with the Australian government’s broader strategic vision to recalibrate its military focus from ground combat towards heightened emphasis on long-range strike capabilities and area denial capabilities. Minister Conroy articulated that the ultimate goal is to elevate the Australian army’s strike capability from 40 kilometers (25 miles) to an impressive 1,000 kilometers. He underscored the urgency of the situation, citing the Indo-Pacific region’s current state as witnessing its most significant arms race since 1945.

This missile production endeavor responds to the escalating strategic competition faced by Australia in the proximity of small Pacific nations, juxtaposed between the United States and China. Moreover, heightened tensions in the South China Sea, particularly between Beijing and Southeast Asian nations like the Philippines, have underscored the necessity for Australia to bolster its defense capabilities.

The initial phase of missile production within Australia will be tailored for launch from a Guided Multiple Launch Rocket System system. Subsequently, the government envisions transitioning to broader-scale manufacturing. In tandem, Australia is contemplating the acquisition of longer-range precision strike missiles capable of targeting locations up to 500 kilometers away. Minister Conroy, without specifying a detailed timeline, affirmed the government’s commitment to securing this enhanced capability by “mid-decade,” thereby fortifying the nation’s strategic position in an evolving geopolitical landscape.

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