In a remarkable display of innovation and efficiency, Australia, with the support of a defense technology firm, has achieved what the U.S. Navy has struggled to accomplish for years: the swift transition of an extra-large undersea drone from concept to contract in a mere three years.
Recently, it was announced that a fleet of the uncrewed undersea vehicle (XLUUV) known as “Ghost Shark” will commence operations in Australian waters next year, backed by a substantial AUS$1.7 billion (approximately US$1.1 billion) contract.
This five-year contract represents a significant milestone in defense procurement, as it secures a consistent revenue stream by becoming a permanent entry in the national defense budget. The agreement encompasses not only the delivery of the platform but also its maintenance and ongoing development, ensuring that Australia remains at the forefront of technological advancements.
Moreover, this initiative underscores the urgent political climate in Australia, which is keen to enhance its military capabilities in the Indo-Pacific region amid rising tensions with China.
As Chris Brose, President of the defense firm, stated in a recent interview, “This achievement reflects a commitment to innovation and the determination to bring new ideas to life. The Australian government has demonstrated that even with limited resources and bureaucratic hurdles, significant progress can be made.”
The contrast with the United States is striking.
Currently, the only XLUUV under development in the U.S. is Boeing’s Orca, which is significantly behind schedule. In contrast, the Ghost Shark was co-developed and jointly funded by Australia and the defense firm in 2022, with each party contributing $50 million. The first prototype was delivered in April 2024, a full year ahead of schedule, and production is already underway.
This program introduces a new paradigm for defense procurement. By investing its own capital, the defense firm has mitigated risks associated with Australia’s expedited acquisition timeline.
But the firm’s ambitions extend beyond Australia.
Shane Arnott, Senior Vice President of Maritime, mentioned that the Ghost Shark can be quickly adapted for various missions, allowing governments to integrate their own payload modules as required. A U.S. payload is currently undergoing testing off the California coast, and a new 150,000-square-foot facility has been established in Rhode Island to manufacture Ghost Sharks for the U.S. market, should a contract be secured.
Brose pointed out, “The United States has been grappling with its XLUUV program for nearly a decade, investing significantly more than what Australia and our firm have spent on developing the Ghost Shark, yet it remains further behind. Our extensive experience in maritime operations equips us to handle a wider range of missions, and we are prepared to deliver at scale, all while maintaining cost efficiency.”
For Australia, the need for advanced capabilities is pressing. As the largest island nation with a relatively small population, it faces the challenge of proximity to potential adversaries, particularly China, which has rapidly expanded its naval presence and conducted provocative exercises in the Pacific. This geopolitical pressure has made the Ghost Shark an attractive solution for Australia’s defense strategy.