The Australian Government has entered into a A$120m ($86m) agreement with Lockheed Martin Australia to begin domestic production of vital guided missile parts, as part of its efforts to develop a sovereign guided weapons industry.
The announcement was made as the government pursues its goal of increasing the proportion of locally sourced components in Australian-made missiles.
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Lockheed Martin Australia will collaborate with Melbourne-based companies Moog Australia and AW Bell to supply key components for the Guided Multiple Launch Rocket System (GMLRS) missile system.
According to the government, this initiative is expected to generate dozens of new jobs and provide export opportunities by integrating Australian-made components into the global supply chain.
Under the contract, Moog Australia will design and manufacture the GMLRS Control Actuation System, which is responsible for steering missiles towards their targets with precision.
The development process will include a skills and knowledge exchange programme involving engineers from both Australia and the United States.
This collaboration aims to support the long-term development of sovereign capability in Australia, according to the Department of Defence.
AW Bell, also based in Melbourne, has been chosen to manufacture two crucial parts for the missile: the canards, which are external fins, and the housing for the Control Actuation System.
The company is currently producing test versions of the canards as part of the project’s initial phase.
The contract comes after Australia began domestic missile production in December 2025, and follows the first test launch of precision surface-to-surface missiles produced in the country earlier this year.
The project is part of the broader 2024 Australian Guided Weapons and Explosive Ordnance Plan, with the government pledging more than A$500m in investment through to 2030 to bolster local manufacturing and boost the use of Australian-made components.
Defence Industry Minister Pat Conroy said: “This is another example of the Albanese Government’s commitment to a future made in Australia and jobs for locals. This contract backs Australian industry and its capacity to contribute to making world-class capabilities right here at home.
“The domestic manufacturing of missiles will be complemented by the development of these key component-manufacturing capabilities. This will boost sovereign manufacturing, creating secure jobs and strengthen our national security.”
In November last year, Moog Australia signed an agreement with Lockheed Martin Australia to develop the Control Actuation System for the GMLRS platform.
