Sydney: Australia will spend 1.7 billion Australian dollars ($1.1 billion) on a fleet of extra-large underwater ‘Ghost Shark’ drones, to strengthen the country’s naval power as it prepares to acquire nuclear-powered submarines under the AUKUS pact.
Defence Minister Richard Marles said that the uncrewed undersea vehicles will operate alongside Australia’s surface fleet and submarines to give the navy a more capable and more lethal edge in the Indo-Pacific.
“This is a profoundly important capability for the Royal Australian Navy. We have consistently articulated that Australia faces the most complex, in some ways the most threatening, strategic landscape that we have had since the end of the Second World War,” Marles said.
The government has signed a five-year, A$1.7bn contract with Anduril Australia to design, build, and maintain the Ghost Shark fleet domestically. Marles described the technology as world-leading, citing its stealth features and long-range strike potential.
Dozens of drones will be produced in Australia, with the first expected to enter service in early 2026. Defence Industry Minister Pat Conroy said the program could eventually support exports to allies.
That’s why @RichardMarlesMP and I announced today that we’re backing it in with a $1.7 billion investment to build a Ghost Shark fleet.
And we’ll build them right here in Australia.
Backing Australian innovation.
Backing Australian industry.
And backing Australian jobs. pic.twitter.com/wNlgfzzNgp
— Pat Conroy MP (@PatConroy1) September 10, 2025
Officials said the Ghost Shark vehicles will be capable of intelligence gathering, surveillance, reconnaissance, and strike missions. Australia’s Defence Science and Technology Group has long argued for integrating autonomous systems into the armed forces, noting the country’s vast coastline and 3 million square kilometres of northern waters that must be defended despite a relatively small population.
The drones form part of a broader overhaul of Australia’s military posture, aimed at extending long-range strike capacity in response to China’s growing military presence in the region.
Separately, Australia plans to build stealth, nuclear-powered submarines in partnership with the United States and the United Kingdom under the AUKUS security pact. The three-decade program has been central to Canberra’s long-term defence planning.
However, the deal has come under renewed scrutiny in Washington. Critics of the AUKUS arrangement have questioned why the US would provide nuclear-powered submarines to Australia when its own navy faces shortages. The Trump administration has placed the pact under review to ensure it aligns with the president’s “America First” agenda.
By investing in Ghost Shark drones alongside the planned nuclear submarine fleet, Australia hopes to secure a technological advantage in the Indo-Pacific and signal its determination to counterbalance China’s expanding influence.
