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Weekly Media and Intelligence Report 12/12/25

Deputy Prime Minister and Defence Minister Richard Marles said he was confident the US was lifting Virginia Class submarine production rates, providing a boon to AUKUS, as part of his visit to the United States. DPM Marles was commenting after visiting Huntington’s shipbuilding facility in Virginia. DPM Marles said Huntington’s Newport News facility was one of two that builds Virginia class submarines for the US Navy. He said the shipbuilding facility was very impressive and where Australian money was being invested in the US submarine production program. He said the shipyard was seeing an increase in production rates which gave Australia confidence about the AUKUS program. DPM Marles comments come after several US officials have expressed concern that the US will not be producing enough Virginia Class submarines for its own Navy let alone sparing 3 to 5 vessels to sell to Australia from 2032, under the AUKUS deal. The Albanese government has pledged to subsidise US submarine production to the tune of US$3 billion or around A$4.7 billion to assist the US to lift production rates enough to accommodate the AUKUS plan. US Secretary of War, Pete Hegseth said the payment of the next Australian instalment of US$1 billion was imminent during bi-lateral talks in Washington this week.

Lockheed Martin Australia’s participation in the Global Supply Chain (GSC) program has provided more than $225 million in export contracts for Australian defence industry. Over the past year, Lockheed has signed contracts with 25 Australian industry partners, including Norseld, Ronson Gears, Q-CTRL, Quickstep, and Advanced Navigation. Lockheed Martin Australia and New Zealand Vice President of operations, Toni Marzulli said exceeding $225 million in export contracts demonstrated the value LMA brings to Australian industry by opening doors to international opportunities. He added that through the GSC, LMA was helping Australian businesses scale, compete and succeed on the global stage. He added that Australian suppliers were now firmly embedded across Lockheed Martin’s international supply chains, providing critical components, including software and services. This involved a range of systems including as part of the Guided Weapons and Explosive Ordnance Enterprise, C-130J Super Hercules, UH-60 Black Hawk, and additional navigation, cyber and satellite systems.

Australia will start manufacturing Guided Multiple Launch Rocket System (GMLRS) missiles this month after the opening of a new factory in Port Wakefield, South Australia. Lockheed Martin Australia and Defence will commence production of GMLRS missiles at the facility by the end of 2025. The project will create around 20 new manufacturing jobs on-site and support hundreds more across the supply chain. The GMLRS missile is a precision strike weapon launched from the High Mobility Artillery Rocket System (HIMARS) recently acquired under the Australian Army’s long-range fires project. The move marks a significant milestone in Australia’s Guided Weapons and Explosive Ordnance (GWEO) Enterprise plan. The factory will be only the second facility in the world to produce GMLRS outside Lockheed Martin’s US facility. This project forms part of the Albanese Government’s $21 billion investment over the decade to acquire more long-range strike systems and manufacture longer-range munitions.

The Albanese Government will invest approximately $1.4 billion to purchase six MQ-28A Ghost Bat drones as the program moves from prototype to production stage. Defence Minister Richard Marles and Defence Industry Minister Pat Conroy confirmed the Ghost Bat had passed a landmark test, by successfully engaging an aerial target with a live weapon. The Ghost Bat deployed an AIM-120 Advanced Medium Range Air-to-Air Missile against an Australian-made Phoenix Jet Uncrewed Aerial Target. Operating as a loyal wingman to a Royal Australian Air Force E-7A Wedgetail and an F/A-18F Super Hornet, the MQ-28A Ghost Bat destroyed the airborne target during trials at the Woomera Test Range in South Australia. The latest investment includes new contracts with Boeing Defence Australia (BDA) for six operational Block 2 MQ-28A aircraft and the development of an enhanced Block 3 prototype. The Albanese Government is investing more than $10 billion on drones and counter drone technology over the next decade, including at least $4.3 billion on uncrewed aerial systems. The Ghost Bat program supports more than 440 high-skilled jobs nationwide, including roles at Boeing Defence Australia and across more than 200 Australian– 70 per cent of program expenditure is directed to Australian industry.

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