Australia and Anduril Advance XL Undersea Vehicle Deployment Amid U.S. Delays

With the assistance of Anduril Industries, Australia has achieved a significant milestone in defense technology, successfully transitioning an extra-large uncrewed undersea vehicle from concept to contract in just three years. Announced on Tuesday, the AUS$1.7 billion (US$1.1 billion) deal will see the “Ghost Shark” fleet begin operations in Australian waters next year. This contract not only secures ongoing revenue for Anduril but also underscores Australia’s urgent need to enhance its military capabilities in response to rising tensions in the Indo-Pacific region, particularly concerning China.

Contract Details and Strategic Importance

The five-year contract awarded to Anduril marks a pivotal moment for Australia’s defense procurement strategy. This program of record ensures that the Ghost Shark will be a consistent line item in the national defense budget, covering delivery, maintenance, and ongoing development. The urgency behind this initiative reflects Australia’s commitment to bolstering its military capabilities amid growing concerns over China’s expanding naval presence. The Ghost Shark is designed for long-range, stealthy surveillance and strike operations, making it a critical asset for Australia’s defense strategy in the Indo-Pacific.

Anduril President Chris Brose emphasized the innovative spirit of the Australian government in bringing this project to fruition. He noted that despite having fewer resources and facing similar bureaucratic hurdles as the U.S. Pentagon, Australia has successfully navigated the complexities of defense procurement. This achievement stands in stark contrast to the United States, where the development of Boeing’s Orca, the only other XLUUV program, has faced significant delays.

Rapid Development and Production

The collaboration between Anduril and Australia has resulted in a remarkably swift development timeline for the Ghost Shark. Co-funded by both parties, the project saw an initial investment of $50 million each, leading to the delivery of the first prototype in April 2024—one year ahead of schedule. Production has already commenced, showcasing a new model for defense procurement that allows for rapid acquisition without compromising quality.

Anduril’s approach to risk management has been crucial in this process. By investing its own capital, the company has mitigated potential delays and ensured that Australia can quickly integrate the Ghost Shark into its naval operations. This proactive strategy not only benefits Australia but also sets a precedent for future defense contracts.

Future Prospects and Global Reach

Anduril’s ambitions extend beyond Australia, with plans to adapt the Ghost Shark for use in other countries. Shane Arnott, Anduril’s Senior Vice President of Maritime, highlighted the vehicle’s versatility, stating that it can be quickly customized with various payload modules to meet specific mission requirements. The company is also testing a U.S. payload off the California coast and has established a 150,000-square-foot factory in Rhode Island to produce Ghost Sharks if contracts are secured in the United States.

Brose pointed out that despite the U.S. spending significantly more on its XLUUV program, it remains behind in development compared to the Ghost Shark initiative. He asserted that Anduril’s extensive experience in underwater operations positions the company to deliver effective solutions at a lower cost and with greater readiness.

Addressing Regional Security Challenges

Australia’s strategic need for advanced military capabilities is underscored by its geographical position and the increasing assertiveness of China in the Pacific. As the largest island nation with a relatively small population, Australia faces unique security challenges, particularly with China’s expanding naval operations and provocative military drills in the region. The Ghost Shark represents a timely and effective response to these threats, enhancing Australia’s ability to safeguard its interests and maintain stability in the Indo-Pacific.

In summary, the partnership between Anduril and Australia not only exemplifies a successful defense procurement model but also addresses pressing security concerns in a rapidly changing geopolitical landscape. As the Ghost Shark prepares for deployment, it stands as a testament to innovation and strategic foresight in military technology.

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