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Australia is set to begin manufacturing guided missiles domestically from 2025, following the signing of key memoranda of understanding (MOU) with the United States to enhance defence cooperation and local production capabilities.
The Guided Multiple Launch Rocket System (GMLRS) Co-Assembly agreement will enable the assembly of an initial batch of these critical munitions in Australia next year. This marks a significant milestone towards the co-production of GMLRS in Australia for both national use and global supply.
Additionally, the 155mm ammunition co-production MOU will facilitate the transfer of United States intellectual property and align production standards for 155mm artillery ammunition. This agreement strengthens cooperation between the Australian Defence Force (ADF) and the United States Army and Marine Corps, enhancing interoperability and supply chain resilience.
The Albanese government has moved swiftly to establish a domestic guided missile manufacturing facility in partnership with Lockheed Martin Australia, a move expected to generate hundreds of skilled jobs across the country.
Deputy Prime Minister and Minister for Defence Richard Marles emphasised the significance of the agreement, stating, “The Albanese government has been utterly determined to see the local manufacturing of guided missiles in Australia – it’s good for our ADF and it’s good for the defence industry and jobs.”
The announcement of these agreements coincides with the United States granting congressional approval for the foreign military sale (FMS) of more than 300 GMLRS rounds to Australia. The FMS approval represents a $147 million investment from the Albanese government, reinforcing its commitment to missile manufacturing and job creation in Australia from this year.
Minister for Defence Industry and Capability Delivery Pat Conroy highlighted the broader implications of the agreements, stating, “This announcement delivers on the Albanese government’s commitment to a future made in Australia. It not only makes Australia safer but moves us towards greater self-sufficiency while creating hundreds of well-paid, skilled jobs for locals.”
Under the government’s strategic plans, a new facility will be constructed, with the capacity to manufacture up to 4,000 GMLRS per year by 2029.
The initiative was reaffirmed at the Australia-United States Ministerial Consultations 2023, where the United States expressed strong support for Australia’s Guided Weapons and Explosive Ordnance (GWEO) Enterprise.
This initiative aims to produce viable quantities of GMLRS, establish an Australian solid rocket motor manufacturing capability, and further develop sovereign guided weapons production.
“This is an important step towards establishing domestic guided weapons manufacturing in Australia. It will complement the acquisition of long-range precision-strike capabilities and strengthen the ADF’s ability to protect Australia and its interests,” Minister Conroy added.
The United States also acknowledged that Australia’s GWEO Enterprise provides a pathway for the co-development, co-production and co-sustainment of critical long-range strike capabilities, supporting supply chains for both nations.
These projects form part of the Albanese government’s broader strategy to accelerate Australia’s long-range strike capabilities, in alignment with the 2024 National Defence Strategy.
The initiative is backed by tens of billions of dollars, including a $16–21 billion investment to establish the GWEO Enterprise and sovereign munitions manufacturing capabilities in Australia.
