Australia announces rapid munitions, missile manufacturing with Thales, Lockheed Martin

The federal government, on 30 October, announced French defence company Thales has been selected as the preferred tenderer to build a new domestic forging capability for 155mm M795 artillery ammunition.

The 155mm M795 artillery ammunitions are used by Australia, the United States and other international partners for the M777A2 light towed howitzer, a critical close fires capability.

Defence will work with Thales as the preferred company to build, establish and commission the forge at the Commonwealth-owned Benalla Munitions facility. This project is expected to support at least 550 jobs.

The forge will produce 15,000 rounds each year by 2028, with capacity to produce up to 100,000 for global consumption. It will also be the first dedicated forge outside of the United States that will manufacture 155mm M795 artillery ammunition.

“Today’s announcement is another example of the Albanese government’s commitment to developing a more capable military force while also supporting a future made in Australia,” Deputy Prime Minister Richard Marles said.

“In our rapidly evolving strategic circumstances, the ADF must be equipped with capabilities that can hold adversaries at risk.

“The 2024 National Defence Strategy affirmed the need to invest in munitions to build stocks, strengthen supply chains and support a domestic manufacturing capability.

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“Investment in a sovereign GWEO Enterprise that can produce and maintain priority weapons will support the ADF’s transformation to an integrated, focused force.”

In another boost to domestic manufacturing, the government is also committing to an Australian facility to manufacture Guided Multiple Launch Rocket Systems (GMLRS), in partnership with Lockheed Martin Australia. This is expected to create 70 local manufacturing jobs and hundreds of jobs to develop the facility.

GMLRS is a long-range, surface-to-surface precision strike capability that can be fired from High Mobility Artillery Rocket System launchers.

The new facility will enable Australia to produce viable volumes of GMLRS for global consumption, as reaffirmed at the 2024 Australia-United States Ministerial (AUSMIN) Consultations. It will be capable of producing up to 4,000 GMLRS each year from 2029. This represents more than a quarter of the current global production and more than 10 times the current ADF demand.

This builds on the government’s commitment to manufacture a small batch of GMLRS in Australia, commencing in 2025.

“By producing GMLRS at scale and investing in the development of a capable and resilient Defence industrial base to forge 155mm M795 artillery projectiles, Australia can be more self-reliant and able to accelerate the delivery of capability to the ADF, as well as our international partners,” Minister of Defence Industry and Capability Delivery Pat Conroy said.

“Today’s announcement demonstrates the Australian government’s commitment to manufacturing munitions in Australia, to develop our sovereign defence industrial base in areas of strategic priority.

“Our industry partners are paramount to achieve the strategic priorities outlined in the 2024 National Defence Strategy. We look forward to working with Lockheed Martin Australia and Thales on these important projects.”

Both projects are part of the Guided Weapons and Explosive Ordnance (GWEO) Enterprise – backed by an investment of up to $21 billion over the next decade – and aligned with the Albanese government’s Future Made in Australia agenda. They also form part of the 2024 Australian GWEO Plan, the government’s blueprint to build Defence’s GWEO stocks, strengthen supply chains and support a domestic manufacturing capability over the decade.

The Minister of Defence Industry and Capability Delivery, speaking at the National Press Club on 30 October, also confirmed the government would be investing in tools needed by the Australian Army.

“To ensure our Army has the tools it needs, the government has more than doubled the number of High Mobility Artillery Rocket System launchers being acquired for the Army and brought forward their introduction,” he said.

“We are also planning to acquire the Precision Strike Missile, which will initially have a range of 500 kilometres, with future development taking it out to 1,000 kilometres.

“The government is acquiring new Guided Multiple Launch Rocket System missiles for the Army. These are short-range, precision, surface-to-surface rocket systems.

“Under our plan, by the end of this decade, Australia will have at least two guided missile factories, a dedicated rocket motor manufacturing facility and a facility capable of producing up to 100,000 artillery ammunition rounds a year.”

More to come.