Australia’s Precision Guided Munitions Production Surge

Australia is enhancing its domestic manufacturing capabilities for precision guided munitions (PGMs) by integrating locally-produced rocket motors and warheads into U.S.-designed Guided Multiple Launch Rocket System (GMLRS) missiles. This initiative marks a major advancement in Australia’s journey toward self-reliant munitions production.

Announced at the Land Forces Expo in Melbourne, the agreement between Thales Australia and U.S. defence giant Lockheed Martin will see Thales manufacture key components—rocket motors and warheads—within Australia. This partnership builds on an earlier announcement that GMLRS missiles would be assembled locally using components exclusively sourced from the U.S., a move initially compared by critics to assembling flat-pack furniture. However, the decision is seen as a foundational step towards a fully integrated Australian PGM production capability.

Lockheed Martin is establishing GMLRS assembly operations at a defence facility in Orchard Hills, New South Wales. The first fully Australian-assembled missile is expected to roll off the line next year. The inclusion of Australian-made components, beginning with warheads and rocket motors from Thales plants in Benalla, Victoria, and Mulwala, New South Wales, is anticipated to be a game-changer for the country’s defence manufacturing sector.

Australian-made components will be gradually incorporated into the GMLRS production line, with the goal of full integration by the end of the decade. Initial production rounds will still feature U.S.-made components, but the development of Australian energetics is well underway, driven by prior successes like Thales’ production of BLU series bombs used by the U.S. Marine Corps.

This bold initiative follows other announcements about domestic production of advanced missile systems, including the Kongsberg Naval Strike Missile and the Joint Strike Missile, signalling Australia’s commitment to a more self-sufficient defence industry.

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