• Australia announces a $1.1 billion investment in 'Ghost Shark' underwater attack drones.
• The contract with Anduril Australia includes plans for dozens of these advanced autonomous vehicles.
• The Ghost Sharks aim to enhance military capabilities amid regional tensions, particularly with China.
• The first units are expected to be operational by early 2026, with significant long-range capabilities.
• This investment is part of broader efforts under the AUKUS partnership with the US and UK.

Australia is set to invest A$1.7 billion (approximately US$1.1 billion) to develop a fleet of large, autonomous underwater vehicles known as "Ghost Sharks." This initiative was announced by Defence Minister Richard Marles, who stated that the move is crucial to enhancing the Royal Australian Navy's capabilities in response to escalating regional tensions, particularly from China. Marles emphasized that the Ghost Shark represents "the highest tech capability in the world," and is designed for a variety of military functions including intelligence, surveillance, reconnaissance, and strike operations, according to SCMP, Aljazeera, and CBS News.

The five-year contract has been awarded to Anduril Australia for the construction of these vehicles, with deliveries expected to commence in early 2026. This contract exemplifies Australia's strategic pivot towards strengthening its military capabilities amidst a challenging security landscape, with Marles asserting that "Australia faces the most complex... strategic landscape since the end of the Second World War." This focus on upgrading military capabilities coincides with Australia’s long-term plans to build a fleet of nuclear-powered submarines through its partnership with the United States and the United Kingdom under the AUKUS framework, as reported by SCMP and Aljazeera.

Marles noted that the Ghost Shark drones will significantly enhance Australia's naval warfare capabilities and will be integral to Australia's defence strategy. He added that “dozens” of these vehicles are anticipated to be manufactured, providing Australia with a significant edge in undersea warfare capabilities. Furthermore, Australia's Defence Science and Technology Group aims to integrate more autonomous technologies to effectively manage its vast maritime domain, which poses logistical challenges due to Australia's geographical expanse, according to CBS News.

As China continues to expand its military reach, recent exercises conducted by the Chinese navy have underscored growing concerns about maritime security in the region. By diversifying and strengthening its military assets, Australia hopes to deter any potential threats to its sea lanes, which are vital for trade and resource movement. The 'Ghost Shark' project signals a proactive approach to confronting these challenges and reinforces Australia's commitment to attaining a formidable naval force, according to CBS News, Aljazeera, and SCMP.