SINGAPORE – Australia’s push to establish sovereign guided weapons production continues to advance, though significant hurdles remain as defense analysts urge greater supplier diversification and urgent workforce planning to support long-term ambitions.
The Guided Weapons and Explosive Ordnance (GWEO) program, launched in 2024, represents a cornerstone of Australia’s 2026 National Defence Strategy. The strategy earmarks between AU$26 billion and AU$36 billion ($18.16 billion to $25.14 billion) for GWEO development, though detailed allocation plans have yet to be disclosed.
The initiative has already secured partnerships with four major defense firms: Kongsberg (Norway), Thales (France), and U.S.-based Lockheed Martin and Raytheon, alongside two Australian entities serving as Enterprise and Support Partners.
Key achievements include the test-firing of domestically produced Lockheed Martin GMLRS rockets, local sourcing of GMLRS components, and an agreement to co-develop Precision Strike Missiles. Additionally, Australia will serve as the first export customer for the AIM-260 Joint Advanced Tactical Missile (JATM) and plans to manufacture Kongsberg’s Naval Strike Missile and Joint Strike Missile locally.
Despite these strides, the Australian Strategic Policy Institute (ASPI) highlighted in April that a substantial portion of GWEO-produced munitions are of U.S. origin, placing strain on American suppliers already facing high global demand.
ASPI supports Australia’s NDS directive to diversify munition sources, suggesting South Korea, the UK, and Germany as viable partners for technology transfer and component supply chains.
A separate analysis by the United States Studies Centre (USSC) at the University of Sydney warns that workforce shortages pose a critical risk to GWEO’s success. Their June report criticizes Australia’s industrial workforce planning as “largely neglected,” citing fragmented coordination among industry, state governments, and training providers.
The report emphasizes that Australia’s technical workforce often lacks geographic mobility due to personal and structural factors, necessitating faster and more coordinated decisions on facility placement across states and territories.
“Beyond ad hoc coordination, we need clear, long-term demand signals to attract and train the specialized talent essential for this mission,” said USSC Director of Foreign Policy and Defence Lavina Lee.
Yet optimism persists. ASPI recently noted that the program “has been hitting milestones on the way to closing capability gaps and building domestic industrial foundations.”
Former GWEO Group chief Air Marshal Leon Phillips expressed pride in the organization’s accomplishments before departing his role in September, stating, “We’ve focused on deepening our war stocks, enhancing our lethality and reach – particularly long-range strike – and importantly, building domestic manufacturing capability.”
Expanded Collaboration in Perth
At the ongoing Land Forces exhibition in Perth, Kongsberg Australia signed a Memorandum of Understanding (MoU) with Zone 5 Technologies to jointly explore manufacturing opportunities for guided missiles.
The partnership aims to deliver affordable, scalable long-range strike systems, air-defense capabilities, and counter-drone technologies tailored for Australia and New Zealand markets.
Kongsberg finalized its acquisition of Zone 5 in June, positioning the combined entity to strengthen Australia’s indigenous weapons ecosystem through shared expertise and integrated supply chains.
John Fry, Managing Director of Kongsberg Australia, underscored the importance of rapid, large-scale production in today’s volatile landscape. “Current developments in Europe and North America highlight the urgent need to produce effective and affordable effectors at speed and scale,” he said.
“Resilient supply chains and robust industrial basing are crucial to ensuring operational readiness when called upon. Zone 5’s designs prioritize streamlined logistics and mass producibility – key traits for any modern arsenal.”
Zone 5 is known for developing advanced systems such as the AGM-188 Rainbow Dagger long-range strike missile and the White Spike counter-drone air defense system – both reportedly deployed in active theaters including Ukraine.
