The Australian and U.S. governments have signed a memorandum of understanding on a cooperative production program for precision strike missiles, or PrSMs, enabling Australian companies to enter the supply chain.
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Canberra said Friday that the Australian industry’s potential PrSM participation includes providing locally produced components and subcomponents.
The MOU was announced during a meeting between Australian Deputy Prime Minister Richard Marles and U.S. Secretary of Defense Pete Hegseth, a 2025 Wash100 winner, at the IISS Shangri‑La Dialogue in Singapore.
Under the MOU, U.S.-Australia negotiations on options for Australian manufacturing and maintenance of the PrSMs will also start later in 2025.
Australian PrSM Investments
The Australian Department of Defence is providing about $201 million over 10 years as a full PrsM cooperative partner. A five-year investment of approximately $97 million will be allocated for the Australian Defence Force to acquire the PrSM munitions necessary to establish its first Long Range Fires Regiment for the weaponry.
Marles, who also serves as ADF chief, noted that Canberra’s PrSM investment will expand and accelerate the Australian military’s long-range strike capabilities. “This will enable deterrence against potential threats and ensure the Australian Defence Force is equipped to meet our strategic circumstances and keep Australians safe,” the deputy premier said.
PrSM is a next-generation, long-range surface-to-surface missile that enhances the lethality of ADF’s joint force. The missile can deliver its long-range strike capability through High Mobility Artillery Rocket System launch vehicles, two units of which were delivered to ADF in March.