Australia plans to significantly expand its investment in drones and counter-UAS systems, with spending expected to reach up to Au$5 billion ($3.6 billion), Defense Minister Richard Marles said Tuesday.
The investment is the result of lessons drawn from recent conflicts in the Middle East and Ukraine, where low-cost, mass-produced drones have reshaped the battlefield and increased demand for counter-drone technologies.
“We look at what’s happening in the Middle East right now – you need counter-drone technology as well,” Marles said in an interview with ABC radio.
The funding increase will form part of a broader plan to spend between Au$12 billion and Au$15 billion over the next decade on autonomous capabilities. These investments include both existing programs, such as the Ghost Shark autonomous submarine and the Ghost Bat uncrewed aircraft, as well as expanded focus on smaller drones and counter-UAS systems.
“Clearly, autonomous systems now are really central to how contest happens, how war happens,” Marles said.
Australia’s defense strategy has traditionally emphasized long-range capabilities due to its geography, including a vast coastline and relatively small population. However, recent conflicts have highlighted the importance of scalable, lower-cost systems that can be deployed in large numbers.
“What you get at the smaller end is mass – you know, lots of units – and that’s what we are seeing play out in Ukraine,” Marles added.
The planned spending increase comes as Australia continues to adapt its defense posture amid regional security concerns, including China’s expanding naval capabilities. It also aligns with ongoing cooperation under the AUKUS partnership with the United States and the United Kingdom, which includes plans for nuclear-powered submarines.
The updated national defense strategy outlining these investments is expected to be released later this week.
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