Australia is strengthening its missile defense and long-range strike capabilities in response to growing regional tensions, particularly following China’s recent intercontinental ballistic missile (ICBM) test in the South Pacific. Describing the Asia-Pacific as entering a “missile age,” Australian officials have outlined new measures in defense strategy, aiming to build a robust deterrence posture and address security challenges with allied countries.
Australian Minister for Defence Industry, Pat Conroy, highlighted this shift during a speech at the National Press Club in Canberra, citing the intensifying strategic rivalry between the United States and China as a primary driver of Australia’s defense strategy. “The competition between these powers is at its most intense in our region, the Indo-Pacific,” Conroy stated. Australia, he added, must adapt its defense posture accordingly, seeking alignment with key partners like the United States, Japan, and South Korea to maintain stability.
Conroy expressed particular concern over China’s recent missile test, which violated the Treaty of Rarotonga by entering the South Pacific, a designated nuclear-free zone. In light of this, Australia plans to equip its navy’s destroyer fleet with SM-6 missiles, capable of providing ballistic missile defense, to better counter similar threats. He emphasized that advanced missile capabilities now serve not only as defense tools but also as instruments of coercion in regional disputes.
Australia’s recent defense initiatives underscore a broader regional trend of increasing military expenditures. In April, the government announced a comprehensive defense strategy, which included a significant rise in defense spending to fortify Australia’s defense against potential disruptions to trade or critical sea routes. Expanding its surface fleet is a central focus, as is deploying stealthy nuclear-powered submarines through a trilateral defense pact with the United States and the United Kingdom, known as AUKUS.
Furthermore, Australia is developing a domestic missile manufacturing sector to support long-term defense needs and reduce dependency on international supply chains. Defence Minister Richard Marles outlined a blueprint for rapid missile production, ensuring that Australia acquires long-range strike capabilities. Recently, the country agreed to a 7-billion Australian dollar ($4.58 billion) contract with the United States to acquire SM-2 IIIC and SM-6 missiles for naval use, as part of a larger plan to invest 74 billion Australian dollars ($49 billion) in missile acquisition and defense over the next decade. This investment includes 21 billion Australian dollars ($13.7 billion) allocated to the Australian Guided Weapons and Explosive Ordnance Enterprise, a new initiative to expand domestic production capacity.
Conroy stressed that Australia’s preparedness for potential conflict requires the ability to sustain defense capabilities independently. “We must show potential adversaries that hostile actions against Australia will not succeed, especially if a conflict is prolonged,” he said, underscoring the importance of locally produced armaments in a world facing supply-chain disruptions and heightened strategic vulnerabilities.
To further strengthen its defense manufacturing, Australia will invest 316 million Australian dollars ($206 million) to establish production facilities for Guided Multiple Launch Rocket Systems (GMLRS) in partnership with Lockheed Martin. Scheduled for completion by 2029, this facility will have an annual production capacity of 4,000 GMLRS units, accounting for a quarter of the world’s current production level. The manufacturing plant will also serve as an export hub for regional allies, helping to bolster shared defense efforts.
In addition to missile production, France’s Thales Group will establish a facility to manufacture 155mm M795 artillery ammunition in the Victorian city of Benalla. This will be the first such production site outside the United States, with operations set to begin in 2028. Expected to produce up to 100,000 rounds annually, the plant will provide critical munitions for howitzers and enable Australia to support partner nations.
Australia has also partnered with Norway’s Kongsberg Defence & Aerospace to jointly produce Naval Strike Missiles and Joint Strike Missiles in Newcastle. This site, set to be operational in the near future, will be the only location outside of Norway authorized for such production, highlighting Australia’s commitment to both self-reliance and regional collaboration in defense manufacturing.
With these substantial investments in defense infrastructure and new alliances, Australia is positioning itself as a key defense player in the Indo-Pacific. The development of local production facilities for advanced weaponry will not only enhance Australia’s security capabilities but also strengthen its ties with trusted allies, underscoring its commitment to regional stability amid an era of rising strategic competition.
