BREAKING: Australia Announces $1.7 Billion Contract for Autonomous Military Submarines
Acting PM reveals "dozens" of Ghost Shark underwater drones to enter service starting January as defense spending reaches historic levels
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Australia will spend $1.7 billion on autonomous military submarines capable of intelligence gathering and strike operations, with the first units entering service in January, Acting Prime Minister Richard Marles announced today.
The contract with Anduril Australia will produce "dozens" of the Ghost Shark autonomous underwater vehicles over the next five years, representing what officials described as the world's leading long-range underwater drone capability.
"What we are announcing today is a $1.7 billion contract with Anduril, which will see the first tranche of these being built," Marles said during a news conference. "The first of these comes into service in January of next year, and so we're announcing it now in September."
The Ghost Shark submarines can conduct "intelligence, surveillance, reconnaissance and strike" operations, Marles said, though officials declined to provide specific details about combat capabilities or operational range.
"We're going to be a little coy in terms of how we answer specific questions about what this can do, given the nature of what it does," Marles said. "One should read those words to the fullest extent. That is the capability that we have here."
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World-Leading Technology
Defense officials claimed the Ghost Shark represents the most advanced autonomous underwater capability globally, designed to complement Australia's nuclear submarine program under the AUKUS partnership with the United States and United Kingdom.
"This is the leading capability in the world in terms of a long-range autonomous underwater capability," Marles said. "What you are looking at with Ghost Shark is the leading capability in the world."
The submarines can operate from shore bases or surface vessels, providing flexible deployment options across Australia's vast maritime domain. Chief of Navy Vice Admiral Mark Hammond confirmed the vessels can "operate from ashore, it can operate from surface vessels, so therefore it can be deployed forward and it can be deployed at long range from the Australian bases."
Pacific Islands Affairs Minister Pat Conroy emphasized the technology's Australian origins, saying "this is Australian technology. It has been designed, prototyped and will now be built here in Australia."
Strategic Context
The announcement comes as Australia faces what Marles described as "the most challenging set of strategic circumstances that we've had since the end of the Second World War."
The autonomous submarines will work alongside Australia's planned nuclear-powered submarines under AUKUS, addressing what officials see as increasing military competition in the Indo-Pacific region.
"Nations will need to have an autonomous underwater military capability," Marles said. "That's what Ghost Shark represents. But we will also need very much a long range capable submarine in the future."
Vice Admiral Hammond pushed back against suggestions that advancing detection technology could make submarines obsolete, noting that "every advancement in detection capability is usually met by an advancement in counter detection capability increased stealth."
"I've heard about transparent oceans since I qualified in submarines 31 years ago, and nothing's really changed," Hammond said.
Crewing Advantages
The autonomous nature of Ghost Shark addresses ongoing military recruitment challenges, requiring no onboard crew while providing significant operational capabilities.
Hammond reported positive naval retention figures, with a voluntary separation rate of only 4 percent. "I think most employers in this country would be proud to have a voluntary separation rate of 4%," he said.
"This capability obviously helps us out in terms of crewing because it doesn't require a crewing capability," Hammond added, predicting the technology would attract young Australians to naval careers.
Defense Spending Increases
The submarine contract forms part of what Marles called "the biggest peacetime increase in defence spending in Australia's history," driven by changing strategic circumstances outlined in the Defence Strategic Review.
"We are making decisions about our own defence capabilities based on our own assessments of our strategic landscape, the strategic challenge that we face, and what we need to do in terms of building a defence force to meet that," Marles said.
Israel-Qatar Condemnation
Marles also addressed Israel's overnight strike on Qatar, condemning the attack as a violation of sovereignty that threatens ceasefire negotiations.
"The strikes by Israel on Qatar are a violation of Qatar's sovereignty. They risk a ceasefire in Gaza," Marles said. "They do not help in terms of a return of the hostages and they also risk an escalation in what's occurring in the Middle East."
He praised Qatar's mediation role, saying the Gulf nation "has actually played a really important role since the conflict began in bringing parties together and trying to promote peace in the Middle East."
Pacific Relations Progress
Despite delays in finalizing a security agreement with Vanuatu, Marles and Conroy emphasized progress in Pacific relationships, citing successful agreements with Tuvalu, Nauru and Papua New Guinea.
"This government is making huge progress in our relationship with the Pacific, repairing the damage done under the previous government," Conroy said.
Marles expressed confidence the Vanuatu agreement would be completed, saying "we too are confident that we will get this done," while emphasizing respect for Vanuatu's sovereignty and decision-making processes.
Solomon Islands Partnership
On the Solomon Islands security partnership, Conroy reported that Prime Minister Jeremiah Manele had reaffirmed Australia as "their security partner of choice" during his first visit after taking office.
Conroy outlined a three-tiered Pacific security approach prioritizing regional solutions, with primary security provided by national police forces, secondary support from Melanesian partners, and third-tier assistance from broader Pacific nations.
"That's entirely consistent with our approach. It's entirely consistent with the Pacific policing initiative," Conroy said.
Technical Specifications
While officials remained secretive about specific capabilities, they confirmed Ghost Shark offers "very long range" operations and incorporates advanced stealth technology.
The submarine program addresses previous technical issues related to "stealth speed and range," with Marles confirming those problems have been resolved ahead of the January deployment date.
The Ghost Shark represents part of Australia's broader underwater autonomous capabilities rather than the complete program, officials indicated, suggesting additional similar systems may follow.
The announcement positions Australia as a leader in autonomous military technology while addressing the strategic challenges of defending vast ocean territories in an increasingly contested region.
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