US defence firm Anduril is to help Australia build a $1.7 billion fleet of robot submarines for the Navy.
The deal was signed amid continuing doubt over US President Donald Trump’s commitment to the AUKUS nuclear submarine deal with the US reviewing the deal (see below).
The Defence Department says it signed a five-year contract with Anduril Australia to build, maintain and upgrade the fleet of Ghost Shark robot subs.
The company says that production has already begun and believes Australia’s use of it will open the door to orders from other countries.
A statement from Anduril (named after a sword in The Lord of The Rings) claims that the Ghost Shark will allow Australia to directly challenge Chinese naval vessels in its own waters.
Deputy Prime Minister and Defence Minister Richard Marles points out that the Ghost Shark is an Australian-developed and made submarine.
“The government’s investments in the Ghost Shark are fast charging the development of long‑range, undersea autonomous vehicles for our Navy while backing Australian businesses,” he says.
“Over the next five years and beyond, the Ghost Shark will equip Navy with the intelligence, surveillance and strike capabilities it needs in an increasingly complex strategic environment.”
Defence Industry Minister Pat Conroy says that so far, three prototypes have been delivered on budget and ahead of schedule.
“Our investment backs in 120 workers and creates more than 150 new high-skilled, local jobs,” he says.
The Ghost Shark is designed for intelligence, surveillance, reconnaissance and strike missions stealthily and at long range.
It is expected to complement Navy’s future surface combat fleet and AUKUS submarines.
Already, $140m has been spent on the subs, payloads and production facilities since the first contract with Anduril was signed in 2022.
Defence says more than 40 Australian companies are part of the Ghost Shark supply chain, which are expected to create 600 more jobs as a result of the new contract.
ANDURIL DEAL COMES AMID AUKUS REVIEW
The US is currently reviewing its AUKUS commitments and specifically the construction of Virginia-class nuclear-powered submarines for Australia.
The Pentagon (now renamed the Department of War) announced the review in June, to be led by AUKUS sceptic and under-secretary of defence Elbridge Colby.
Lagging submarine production in the US, labour shortages and the high cost of the deal have been cited as ongoing problems with the pact.
In July, Australia and the United Kingdom announced a 50-year security deal as part of AUKUS in Geelong.
The deal will boost Australia’s nuclear submarine building capability and allow for the rotational visit by a UK submarine to the HMAS Stirling base in Western Australia.
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