Next month’s federal Budget will earmark more than $4 billion for Australia to acquire more long-range missile strike systems and manufacture guided weapons, Defence Minister Richard Marles announced on Wednesday.
Experts say the two-year timeline for local production of munitions makes it an ambitious plan that will need the US to continue directly supplying missiles while also leading Australia’s local manufacturing push.
The local defence industry is urging the government to incentivise the companies to share intellectual property and technical knowledge so the move creates a genuine local missile manufacturing capability. But it warns a new speed to capability imperative could give foreign suppliers ammunition to lock local suppliers out of local production.
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