The government has unveiled an ambitious vision for enhancing national defence production of advanced weapons, moving from no dedicated guided missile manufacturing factories at present to at least two by 2029.
As well, the Government will establish a new munitions facility to supply the ADF and partners with artillery ammunition.
Additionally, the government will invest in a dedicated solid rocket motor manufacturing facility to support guided weapons manufacturing ambitions, with that facility to be operational by 2030.
Investments in new precision guided munitions (PGM) will greatly enhance Australian Defence Force (ADF) long range strike capabilities.
Navy, now able to hit targets at 200 kilometres, will be able to reach out 2,500 kilometres. The RAAF can now strike at a range of 100 kilometres – it will be able to hit targets at 900 kilometres. Army artillery can now hit targets at 40 kilometres – with new missiles it will be able to strike out to 1,000 kilometres.
The Guided Weapons and Explosive Ordnance (GWEO) Strategic Plan, released on Wednesday, says an unprecedented conventional and non-conventional build-up of military capability is occurring in the Indo-Pacific.
Countries are investing in new and sophisticated weapons, characterised by greater range and speed and which are increasingly difficult to counter.
That proliferation has rapidly reduced Australia’s geographical advantage and qualitative regional capability edge.
“China continues to develop the largest ballistic missile program in the world, with an expanded arsenal of cruise and hypersonic missiles. This is taking place without the strategic reassurance or transparency the region expects from great powers,” the government’s plan states.
“North Korea is expanding its ballistic missile program and providing munitions to Russia to prosecute its unprovoked, illegal and immoral war against Ukraine.”
Launching the plan, Defence Industry Minister Pat Conroy said the GWEO Enterprise was the government’s answer to protecting Australia in the missile age.
“It’s a combination of action to grow our national munitions and missile stockpile, while building the industrial base to manufacture guided weapons and explosive ordnance in this country.
“Real progress is being made, very quickly. But it came off a very low base.”
The Plan says the war in Ukraine has highlighted the importance of having a national defence industrial base and munitions manufacturing capability, along with secure supply chains with trusted partners as a cornerstone of self-reliance and protection of national sovereignty.
Right now, Australia doesn’t manufacture any precision guided munitions (PGM), though it did in the 1960s. All PGM and much conventional munitions are imported, mostly from the US.
Australia does possess capabilities to produce some explosives and propellant powders and to manufacture small arms ammunition and some aircraft bombs. Some companies do manufacture PGM components for overseas primes and Australia does possess a nascent capability to make solid rocket motors.
Ukraine and other conflicts have prompted a re-evaluation of ADF munitions consumption rates in a conflict, of stockpile levels and of the industrial base needed to expand production of advanced weapons.
That’s not just Australia’s problem. Industrial capacity in the West has declined to the point where there’s insufficient capacity to quickly escalate to surge production.
“This means that lead times for munitions, especially advanced weapons, are excessively long. There is a strong imperative for increased self-reliance through the establishment of domestic manufacture capabilities,” The Strategic Plan says.
The guided weapons industry generally operates on a sell-then-build approach, meaning most advanced weapons are sold before they are made, sometimes years in advance, creating long delivery lead times.
“Without a domestic GWEO manufacturing capability, Australia will remain highly vulnerable to delays or disruptions to foreign supply chains over the long-term, especially in key long-range guided weapons,” the Plan adds.
“Growing domestic manufacture from a relatively modest industrial base in an accelerated timeframe is an ambitious, complex and labour-intensive undertaking.”
The Plan indicates this can’t be left solely to the private sector.
“Based on Defence’s assessment, domestic manufacturing of GWEO will require Government intervention to attract private investment at scale. Without Government support, the private sector will not deliver the necessary investment in GWEO manufacturing,” the plan explains.
The Government’s mandate for GWEO is to pursue three lines of effort – long range strike, uplift of stockpiles and domestic manufacture.
“We will manufacture weapons and components where we have sufficient volume to sustain production and which deliver a relevant and enduring Defence or industrial capability,” it says.
The government will invest $850 million in partnership with Kongsberg Defence Australia to manufacture and maintain the Naval Strike Missile (NSM) and Joint Strike Missile (JSM) at Newcastle. Construction will start this year with full rate production achieved in 2028.
The first batch of Lockheed Martin GMLRS rockets, assembled from US-sourced components at a temporary plant in western Sydney, will be produced next year.
The government will invest $316 million to establish an Australian Weapons Manufacturing Complex (AWMC) in partnership with Lockheed.
Potential sites have been identified in NSW and Victoria, with a decision to be made next year. AWMC will be operational by 2029 and able to produce up to 4,000 GMLRS per year, far more than the ADF will need with the rest available for export.
Pending arrival of any significant quantities of domestically manufactured PGMs, the ADF will continue to rely overwhelming on imported munitions, mostly from the US but also Norway and Israel.
The GWEO Strategic Plan outlines moves to uplift stocks through foreign acquisition, mostly through the US Foreign Military Sales scheme.
Defence is also enhancing its munitions storage mostly at large defence bases throughout Australia.