In an effort to strengthen military capabilities amidst a regional arms race, Australia announced on Thursday that it has signed a US$570 million deal to produce missiles domestically.
At a facility north of Sydney, Defence Industry Minister Pat Conroy announced an agreement to build Joint Strike Missiles (JSM) for use by the air and navy.
Later this year, the facility will begin construction, producing JSMs and anti-ship cruise missiles that may be installed on cutting-edge F-35A aircraft.
“This is about investing in our advanced, high-tech manufacturing industry and developing our sovereign defence industrial base,” said Conroy.
The factory would start production in 2027 and be able to produce 100 missiles annually, a defense official told AFP.
Kongsberg in Norway created both of the missiles.
A lack of capacity to manufacture weapons has alarmed many US allies, who are worried about China’s enormous defense spending and Russia’s invasion of Ukraine.
A number of Asia-Pacific countries, including Australia, are significantly raising their defense budgets.
Asian defense spending hit a record US$510 billion in 2023, according to the London-based think group International Institute for Strategic Studies.
Australia has started a number of large-scale defense initiatives, one of which is building a fleet of nuclear-powered submarines.
