The Australian Government has announced a step toward expanding domestic manufacturing capability for guided weapons, with a new agreement aimed at exploring local production of key missile components, according to the Australian Department of Defence.
In a media release, the department said a Letter of Intent was signed between Defence and German warhead manufacturer TDW GmbH, with the signing observed by Australia’s Minister for Defence Industry Pat Conroy and Germany’s Defence Minister Boris Pistorius.
The agreement outlines a shared ambition to strengthen guided weapons manufacturing in Australia. Under the arrangement, Defence and TDW will explore options for the manufacture and maintenance of warheads for the Naval Strike Missile and Joint Strike Missile, potentially creating opportunities for Australian businesses to participate in global supply chains.
According to the Defence Department, both missile systems are designed for deployment against advanced naval and land-based targets.
It noted that the initiative forms part of the Albanese Government’s broader investment of up to $850 million to establish local manufacturing and maintenance of the missiles at a facility near Newcastle, in partnership with Kongsberg Defence Australia.
This includes up to $137 million earmarked for the domestic manufacture of priority components such as warheads.
The government has also committed between $16 billion and $21 billion over the next decade to develop a sovereign Guided Weapons and Explosive Ordnance Enterprise.
In the statement, Conroy said the agreement represented progress in expanding domestic capability. “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.
He added that the initiative would help position Australia within regional supply chains. “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.”
Conroy also noted the role of international collaboration, stating the agreement “demonstrates how we are working hand-in-hand with proven international partners to strengthen Australia’s sovereign manufacturing of guided weapons and explosive ordnance.”
The Defence Department did not provide further details on timelines or final investment decisions, noting that the Letter of Intent signals an initial step toward assessing manufacturing and maintenance options in Australia.
