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Australia to spend $1.1 billion on Anduril undersea drone fleet

Published by Global Banking & Finance Review

Posted on September 10, 2025

2 min read

· Last updated: January 22, 2026

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Australia to spend $1.1 billion on Anduril undersea drone fleet
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By Kirsty Needham SYDNEY (Reuters) -Australia said it will spend A$1.7 billion ($1.1 billion) on a fleet of "Ghost Shark" autonomous undersea vehicles, developed by its defence force and U.S. startup

Australia Invests A$1.7 Billion in Anduril's Undersea Drone Fleet

Australia's Defence Investment

By Kirsty Needham

Overview of the Ghost Shark

SYDNEY (Reuters) -Australia said it will spend A$1.7 billion ($1.1 billion) on a fleet of "Ghost Shark" autonomous undersea vehicles, developed by its defence force and U.S. startup Anduril Industries, for surveillance and strikes.

Production and Export Opportunities

Defence Minister Richard Marles told reporters on Wednesday the Ghost Shark will complement Australia's navy surface fleet and submarines to provide "a more capable and more lethal navy".

Integration with Existing Forces

Dozens of Ghost Sharks will be built in Australia, with opportunities to export to allies, Defence Industry Minister Pat Conroy said.

"It has the capability to conduct intelligence, surveillance and reconnaissance and strike at extremely long distances from the Australian continent," Conroy said, adding that the first Ghost Sharks will be in service at the beginning of 2026.

The contract with Anduril Australia covers the delivery, maintenance and continued development of the Ghost Shark over the next five years, officials said.

Anduril has been readying a facility in New South Wales for production ahead of any contract. It began working with Australia's defence force on the development of the Ghost Shark in 2022.

Australia's Defence Science and Technology Group has said it wants to incorporate autonomous technology into the defence force because Australia has a vast coastline and up to 3 million square kilometres (1.2 million square miles) of northern ocean that needs to be defended, but only a relatively sparse population.

It separately plans to build nuclear-powered submarines with Britain and the United States under the AUKUS programme over three decades.

($1 = 1.5168 Australian dollars)

(Reporting by Kirsty Needham; Editing by Edwina Gibbs)

Key Takeaways

  • Australia invests A$1.7 billion in Ghost Shark drones.
  • The drones are developed with Anduril Industries.
  • Ghost Sharks will enhance Australia's naval capabilities.
  • Production will occur in Australia with export potential.
  • First drones expected to be operational by 2026.

Frequently Asked Questions

What is the purpose of the Ghost Shark drones?
The Ghost Shark drones are designed to conduct intelligence, surveillance, reconnaissance, and strike capabilities at long distances from Australia.
How much is Australia spending on the undersea drone fleet?
Australia is investing A$1.7 billion (approximately $1.1 billion) in the fleet of Ghost Shark autonomous undersea vehicles.
Where will the Ghost Sharks be produced?
Dozens of Ghost Sharks will be built in Australia, with plans for potential exports to allied nations.
What is the timeline for the Ghost Shark project?
The contract with Anduril covers the delivery, maintenance, and continued development of the Ghost Shark over the next five years.
What other defence projects is Australia involved in?
Australia plans to build nuclear-powered submarines with Britain and the United States under the AUKUS programme over the next three decades.

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