iscover
Australia has taken a significant step towards building a sovereign guided weapons industry, with a new agreement to explore local production of critical missile components in partnership with Germany.
Minister for Defence Industry Pat Conroy and German Defence Minister Boris Pistorius oversaw the signing of a letter of intent between the Department of Defence and German warhead specialist TDW, marking a key milestone in closer bilateral defence cooperation.
The agreement signals a shared ambition to expand Australia’s domestic manufacturing capability for guided weapons, with a particular focus on warhead production and sustainment. Both nations will now investigate options to manufacture and maintain warheads for the Naval Strike Missile and Joint Strike Missile within Australia.
These advanced missiles are designed to strike both heavily defended warships and land-based targets, forming a critical component of Australia’s evolving long-range strike capability.
The move is expected to open the door for Australian industry to integrate into global supply chains, creating new opportunities for local businesses while strengthening national resilience in munitions production.
Minister Conroy said: “This letter of intent with TDW marks a major step forward in building a Defence Future Made in Australia that will strengthen the Australian Defence Force, grow our resilience and support our partner nations through exports.”
The initiative builds on the Albanese government’s broader investment of up to $850 million to establish a world-class missile manufacturing and maintenance facility near Newcastle, in partnership with Kongsberg Defence Australia. Of this, up to $137 million has been earmarked specifically for the domestic production of priority missile components, including warheads.
“It advances the government’s commitment to establish Australia as a leading Indo-Pacific hub for cutting-edge missile manufacturing, placing local businesses at the forefront to enter global supply chains,” Minister Conroy added.
It also forms part of a much larger commitment valued at between $16 billion and $21 billion over the coming decade, to fast-track the development of a sovereign Guided Weapons and Explosive Ordnance enterprise.
Minister Conroy said: “This demonstrates how we are working hand in hand with proven international partners to strengthen Australia’s sovereign manufacturing of guided weapons and explosive ordnance.”
The latest agreement underscores Canberra’s push to reduce reliance on overseas supply chains while boosting its ability to sustain and scale advanced munitions in a more contested strategic environment.
Stephen Kuper
Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.
