Australia has moved to strengthen its guided weapons manufacturing capability through a new agreement with German defence company TDW.
The minister for defence industry Pat Conroy and German defence minister Boris Pistorius observed the signing of a Letter of Intent aimed at expanding cooperation on missile components.
The agreement outlines plans to explore the manufacture and maintenance of warheads for the Naval Strike Missile and Joint Strike Missile in Australia. Both systems are designed for use against enemy warships and land-based targets.
The initiative forms part of a broader effort to establish domestic production capacity, including a new facility near Newcastle being developed with Kongsberg Defence Australia.
The Australian Government has committed up to $850 million to support local manufacture and maintenance of the missiles, with up to $137 million allocated specifically for priority components such as warheads.
The programme sits within a wider $16–21 billion investment over the decade to develop a sovereign Guided Weapons and Explosive Ordnance Enterprise.
Mr Conroy said the agreement would strengthen Australia’s industrial base and international partnerships.
“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,” he said.
“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.”
The partnership is expected to create new opportunities for Australian companies to participate in global defence supply chains while supporting national security objectives.