Australia’s navy will begin operating long-range lethal underwater drones from January next year, after the government confirmed it will spend $1.7 billion to locally build a fleet.

The drones, known as “Ghost Sharks”, will be capable of intelligence, surveillance, reconnaissance and strike operations.

As the United States reviews the $368 billion AUKUS defence pact, which will enable Australia to acquire US nuclear-powered submarines by the 2030s, Acting Prime Minister Richard Marles said the Ghost Shark would complement, not replace, the alliance.

“Ghost Shark operates in conjunction with it, that’s the point that I made up front. It also works in conjunction with our surface fleet, in what is clear is that going forward nations will need to have an autonomous military capability and that’s what Ghost Shark represents,” he said.

“We will also need very much a long range capable submarine in the future and I’m really confident that’s what we’re developing under the banner of AUKUS by providing Australia with that capability.”

Mr Marles would not specify how many drones the government intends to acquire but said there would be “dozens”, with some entering service from early next year.

‘Highest tech capability in the world’: Marles

He described the investment as a major boost to Australia’s undersea warfare capabilities, complementing the navy’s expected future nuclear-powered submarines.

“This is the highest tech capability in the world, it exemplifies the fact that Australia is leading the world in terms of autonomous underwater military capabilities,” Mr Marles said.

Navy chief Vice Admiral Mark Hammond said the Ghost Shark could be launched from onshore and warships.

He added that he was confident Australia and its allies would continue to have a “capability advantage” in undersea warfare, even as countries such as China develop sophisticated technologies as seen in the massive military parade in Beijing last week.

Mr Marles also stressed the need for discretion about Ghost Shark’s specific functions. 

“We’re going to be a little coy in terms of how we answer specific questions about what this can do, given the nature of what it does,” he said.

The program is being delivered as part of a five-year contract led by major US defence company Anduril that will also handle maintenance and ongoing development.