Australian Minister for Defense Industry Pat Conroy and Defense Minister Richard Marles, left, are pictured with an autonomous undersea vehicle known as the Ghost Shark at HMAS Kuttabul naval base in Sydney, Wednesday, Sept. 10, 2025. Mick Tsikas / AP

Australia will spend $1.1 billion on building dozens of locally developed underwater attack drones, Defense Minister Richard Marles said on Wednesday.

The first of the stealthy, long-range "Ghost Sharks" will be delivered to the Australian navy in January next year under a five-year contract with Sydney-based Anduril Australia, Marles said.

"Australia is leading the world in terms of autonomous, underwater military capabilities," Marles told reporters in Sydney.

The large, autonomous underwater vehicles would significantly boost Australia's undersea warfare capabilities, complementing a fleet of submarines powered with U.S. nuclear technology, Marles said.

The first of those submarines provided under the AUKUS partnership with the United States and Britain won't be delivered to Australia until 2032.

Marles would not say precisely how many Ghost Sharks would be built. But he said the Australian navy would be provided with "dozens" over the next five years.

He also wouldn't comment on the Ghost Sharks' range other than to describe it as "very long range."

As an island continent and a trading nation, Australia sees the possibility of its sea routes being blocked by an enemy as a major strategic threat.

A Chinese navy flotilla conducted a live-fire exercise in the sea between Australia and New Zealand in February in what was widely regarded as a demonstration of China's growing military reach.

The flotilla almost completely circumnavigated Australia. The Chinese navy rarely travels so far south.

California-based Anduril Industries was contracted in 2022 to produce three Ghost Shark prototypes for the Australian navy.

The Ghost Shark is designed to perform intelligence, surveillance and reconnaissance roles as well as strike operations, a government statement said.

Chief of Navy Vice Adm. Mark Hammond said the drones could be launched from the shore and from surface ships.

Hammond said he expected the "undersea battlespace" will become increasingly congested and contested.

"I believe our allies and partners will continue to enjoy a capability advantage in that space provided we invest in capabilities like Ghost Shark and others as well as our crewed systems for years to come," Hammond said.

Last year, the partnership announced that Japan would work with AUKUS on maritime autonomy and, according to the official, there are also conversations with Canada, South Korea, and New Zealand about potential projects on emerging capabilities.

Last month, Australia said it would also upgrade its navy with 11 Mogami-class frigates built by Japan's Mitsubishi Heavy Industries, first entering service by 2030.

Billed as one of Japan's biggest defence export deals since World War II, Australia has agreed to pay US$6 billion over the next 10 years to acquire the fleet of stealth frigates.

Mogami-class warships — advanced stealth frigates equipped with a potent array of weapons — are to replace Australia's ageing fleet of Anzac-class vessels.

China has accused AUKUS of provoking a nuclear arms race and disrupting peace and security in the Indo-Pacific region.

Source