Australia's $1.3 Billion Missile Deal: Strengthening Defense Amid Global Tensions

Australia invests A$2 billion in U.S. supersonic missiles as part of its defense strategy, despite resisting U.S. demands to increase defense spending to 3.5% of GDP. The deal underscores Australia's commitment to military modernization amid growing global tensions, particularly with China's military expansions.


Devdiscourse News Desk | Sydney | Updated: 03-07-2025 08:56 IST | Created: 03-07-2025 08:56 IST
Australia's $1.3 Billion Missile Deal: Strengthening Defense Amid Global Tensions
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Australia has announced a A$2 billion ($1.3 billion) purchase of supersonic missiles from the United States, highlighting its dedication to defense expenditures. However, Prime Minister Anthony Albanese has maintained his stance against the U.S.'s push for a 3.5% defense spending target. On Thursday, Minister for Defence Industry Pat Conroy confirmed the acquisition of AIM-120C-8 and AIM-120D-3 missiles, produced by American defense giant Raytheon Technologies.

The newly acquired missiles will enhance the capabilities of Australia's F/A-18 and F-35 fighter jets and support a new army brigade tasked with targeting aerial threats up to 500 kilometers away. Albanese has turned down U.S. requests to boost long-term defense spending to 3.5% of GDP, maintaining a projection of 2.3% by 2033. Nonetheless, the Australian government remains committed to bolstering its defense capabilities, as emphasized by Foreign Minister Penny Wong during meetings with U.S. counterpart Marco Rubio in Washington.

Amid international tension, particularly surrounding China's military developments, Albanese last year pledged A$74 billion ($47 billion) for missile acquisitions from Europe and the U.S. This includes A$21 billion dedicated to creating a Guided Weapons and Explosive Ordnance Enterprise in Australia. The U.S. Congress received notification of the sale of 400 missiles to Australia through its foreign military sales program in April, with an additional $2 billion proposed sale of electronic warfare systems and equipment for Australia's F/A-18 Super Hornet and EA-18 Growler jets reported in June.

(With inputs from agencies.)

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