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Australia’s push to build a sovereign missile manufacturing industry has taken another major step forward, with more locally-made components set to be integrated into advanced guided weapons produced onshore.
The Albanese Government has announced a new $120 million contract with Lockheed Martin Australia to begin manufacturing critical components for guided missile systems domestically, deepening Australia’s industrial capability while creating new high-skilled jobs.
Under the agreement, Lockheed Martin Australia will partner with Melbourne-based defence manufacturers Moog Australia and AW Bell to produce key parts for the Guided Multiple Launch Rocket System (GMLRS), the precision strike missile used by allied forces around the world.
The move is being hailed as a significant milestone in the Government’s broader ambition to establish a sovereign guided weapons and explosive ordnance industry capable of supporting both Australia’s defence needs and future export opportunities.
Minister for Defence Industry Pat Conroy said the deal demonstrated the Government’s commitment to building advanced manufacturing capability in Australia while strengthening national security.
“This is another example of the Albanese Government backing Australian industry, Australian workers and a future made in Australia. This contract supports local businesses and their ability to deliver world-class defence capabilities right here at home,” Minister Conroy said.
As part of the program, Moog Australia has been selected to design and manufacture the missile’s Control Actuation System a critical component responsible for steering the missile accurately towards long-range targets during flight.
The project will also see Australian engineers work alongside their United States counterparts through a dedicated exchange program aimed at transferring specialist skills and technical expertise to help grow Australia’s long-term sovereign capability.
“The domestic manufacturing of missiles will be complemented by the development of these key component manufacturing capabilities,” Minister Conroy added.
Meanwhile, AW Bell has been tasked with producing the missile’s canards the small external fins used to control stability and manoeuvrability along with the housing for the Control Actuation System. The Victorian company is already developing prototype versions of the components.
The contract follows the commencement of domestic missile manufacturing in December 2025 and comes after Australia successfully conducted the first test firing of locally-made precision surface-to-surface missiles earlier this year.
The Government says the investment will not only strengthen Australia’s defence industrial base, but also help integrate local manufacturers into global supply chains, unlocking future export opportunities and supporting long-term economic growth.
“This will boost sovereign manufacturing, create secure local jobs and further strengthen Australia’s national security,” Minister Conroy added.
The announcement forms part of the Government’s 2024 Australian Guided Weapons and Explosive Ordnance Plan, which commits more than $500 million through to 2030 to expand domestic manufacturing capacity and increase the use of Australian-made components across the defence sector.
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.
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