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The Australian government has reaffirmed its commitment to strengthening the nation’s sovereign defence industrial base, announcing the next phase in developing domestic manufacturing capabilities for large-calibre munitions.
The initiative is a key pillar of both the 2024 National Defence Strategy and the Guided Weapons and Explosive Ordnance (GWEO) Enterprise, which collectively aim to reduce reliance on global supply chains and ensure the Australian Defence Force (ADF) can sustain itself during times of conflict or regional crisis.
The announcement follows a Defence review of the initial 2023 tender process, which sought to establish a sovereign forging and manufacturing capability for 155mm M795 projectiles.
In the time since, global events, including the war in Ukraine, heightened strategic competition in the Indo-Pacific and unprecedented global demand for ammunition have significantly altered the defence industrial environment.
In particular, the United States has dramatically scaled up its own production of 155mm rounds and major allies have made similar moves, reducing the immediate requirement for domestic M795 production at scale in Australia.
Simultaneously, demand for naval 5-inch ammunition has surged, both from Australia and international partners. As a result, Defence has made the strategic decision to pause the current procurement activity for 155mm projectiles and refine its requirements.
However, this does not mark a withdrawal from the effort, rather it reflects a recalibrated approach that will better align Australia’s sovereign capability investments with operational needs and international supply dynamics.
The government remains committed to developing a sovereign 155mm forging capability, with an ambition to produce 15,000 projectiles per year by 2028, with further growth subject to future demand and defence planning.
In parallel, the Department of Defence is working closely with industry partners to accelerate local production of naval 5-inch munitions, which are essential to the Navy’s surface combatant force including destroyers and future frigates. These munitions are key to both conventional naval fire support and layered maritime strike operations.
The capability will also serve as a potential export opportunity, with Defence exploring ways to support allied forces facing similar supply challenges strengthening Australia’s role as a regional security partner and contributor to collective resilience.
These developments are backed by substantial investment. The 2024 Integrated Investment Program allocates between AU$16 billion and AU$21 billion over the coming decade towards the GWEO initiative.
The funding supports both government-owned and industry-led manufacturing projects, spanning tactical missiles, guided rockets, smart munitions and large-calibre conventional ammunition.
The GWEO Enterprise is jointly led by Defence and industry partners, including Lockheed Martin Australia and Raytheon Australia, and aims to transform the way Australia acquires, produces and sustains critical munitions and strike weapons.
These efforts come as part of a broader push to ensure that Australia’s defence industrial base is prepared for high-end conflict, resilient against global supply chain shocks and capable of scaling production in response to operational needs.
The move also reinforces Australia’s commitment to AUKUS Pillar Two, which includes collaborative development of advanced defence capabilities among Australia, the United States and the United Kingdom. Sovereign munitions production will underpin greater interoperability and shared sustainment among AUKUS partners.
As Defence refines its approach, further announcements are expected on facility locations, local industrial partners and workforce development programs to support munitions manufacturing. This will include partnerships with TAFEs and universities to ensure Australia has the technical skills pipeline needed to sustain a modern defence industry.
In an era of growing regional uncertainty, the Albanese government’s recommitment to sovereign munitions production signals a clear intent: Australia must be ready, resilient and able to fight with its own hands if required.
