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Australia, U.S. Seal Missile Co-Production Plan as AUKUS Funding Ramps Up

Canberra signals industrial self-reliance to offset timing risks in the AUKUS submarine program.

Overview

  • Defence Industry Minister Pat Conroy announced a signed statement of intent with the U.S. and Lockheed Martin to co-produce guided missiles in Australia.
  • An Alabama-based office will support the effort, with domestic production slated to begin by year’s end and capacity targeted at up to 4,000 GMLRS/PrSM missiles annually.
  • Output is intended to feed the U.S.-led supply chain and selected partners, with exports governed by Australia’s export-control rules.
  • Conroy said Australia has paid US$1 billion to U.S. submarine shipyards and plans another US$1 billion payment shortly to boost Virginia-class production under AUKUS.
  • The Pentagon’s review of the submarine transfer remains in progress, while a new ASPI report highlights a near-term deterrence gap and urges unconventional measures before the first boats arrive.