The Albanese Government has taken the next step toward expanding the Australian Defence Force’s long-range strike capabilities – while also boosting local industry participation in global defence supply chains.
A new Memorandum of Understanding has been signed between Australia and the United States to jointly progress the production, sustainment, and further development of the Precision Strike Missile. The Memorandum of Understanding designates Precision Strike Missile as a cooperative program between the two nations, providing the Australian Defence Force with access to next-generation munitions.
Crucially for Australia’s industrial base, the agreement opens the door for local manufacturers to participate in the Precision Strike Missile supply chain. This includes opportunities to supply components and sub-components, with discussions around broader domestic manufacturing and maintenance to begin later this year.
Deputy Prime Minister Richard Marles and US Secretary of Defense Pete Hegseth formalised the agreement at the Shangri-La Dialogue in Singapore, following commitments made at the 2024 Australia–United States Ministerial Consultations.
Precision Strike Missile is a surface-to-surface missile capable of being launched from High Mobility Artillery Rocket System vehicles. The Australian Army took delivery of its first High Mobility Artillery Rocket System vehicles in March 2025, enhancing its long-range strike capabilities.
To support the program, the Department of Defence will invest approximately $310 million over 10 years as a full cooperative partner, with an additional $150 million allocated over five years to acquire initial capability for the first Long Range Fires Regiment.
“Australia’s capability and technology cooperation with the United States is a critical part of our Alliance,” said Deputy Prime Minister Richard Marles.
“The Albanese Government’s investment in the Precision Strike Missile will expand and accelerate land-based long-range strike capabilities.”
Minister for Defence Industry Pat Conroy added that the partnership aligns with the 2024 National Defence Strategy and the Government’s Strategy of Denial posture, while offering a clear path for Australian companies to engage in global defence supply chains.
“This is another example of the Albanese Government working with the United States to increase opportunities for Australian industry in global supply chains,” Mr Conroy said.