Government signs $1.7 billion, five-year contract with Anduril on Ghost Shark

The federal government will spend $1.7 billion to acquire a new fleet of Ghost Shark extra-large autonomous undersea vehicles, signing a contract with Anduril Australia for delivery, maintenance and continued development over the next five years.

According to a statement from defence minister Richard Marles and defence industry minister Pat Conroy on Wednesday, the fleet will complement the Royal Australian Navy’s future surface combatant fleet and upcoming nuclear‑powered submarines. The undersea craft is designed for intelligence, surveillance, reconnaissance and strike operations, “stealthily and at long range”. 

The federal government under former prime minister Scott Morrison entered into a collaborative contract with Anduril in 2022, and approximately $140 million has been invested in developing the Ghost Shark platform, payloads and production facilities since then.

Anduril Australia is a subsidiary of USA defence company Anduril Industries. The parent company praised the speed with which the RAN moved “from concept to production of the Ghost Shark SSK… in less than three years” and taking on “shared risk in pursuit of speed and capability” by co-developing and co-funding development.

“Our investment backs in 120 existing workers and creates more than 150 new high-skilled, local jobs,” said Conroy of expected growth at Anduril Australia.

Approximately 40 Australian companies are currently part of the Ghost Shark supply chain, with these expected to cumulatively add 600 jobs “as a result” of the announcement. 

The messaging from Anduril on the strategic implications of the purchase was markedly different from its customer’s.

The reason for the risk-taking nature of the project “is clear” and entry of Ghost Shark into full-rate production heralded “a new era of seapower through maritime autonomy” added Anduril.

“For years, Australia has faced the persistent and threatening presence of Chinese naval assets in its home waters” it continues. 

“Ghost Shark is the instantiation of a Program of Record for AUVs that can directly address this challenge through coastal defense patrols and area-wide domain awareness powered by artificial intelligence at scale. 

“Success in this effort would be a landmark opportunity to demonstrate the potential of autonomous seapower to address clear and urgent national security problems.”

Picture: credit Anduril

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