Defence Minister reveals $7b price tag for US long and medium-range missiles

Australia’s navy will acquire long-range missiles from the US, allowing it to intercept ballistic missiles for the first time. The $7 billion deal, approved by the US Congress, means Australia will buy medium-range and long-range missiles, known as the Standard Missile 2 Block IIIC and the Standard Missile-6, made by Raytheon in Tucson, Arizona.

These weapons are the most advanced of their kind in the world and will be deployed in stages across the Navy’s fleet of Hobart class destroyers and the Hunter class frigates once they are built.

The acquisition follows the Defence strategic review, which found Australia was unprepared as the world entered the missile age. Professor Peter Dean, who contributed to the strategic review as a senior adviser, said the medium and long-range missiles had reaches of up to 200 and 300kms, respectively. This compares to the navy’s current short-range missiles that have a reach of about 50km.

In the wake of Russia’s full-scale invasion of Ukraine, global demand for longer-range missiles has skyrocketed, with production unable to keep up with demand. Australia’s acquisition of the technology, held tightly by the US military, demonstrated the strength of its relationship with America. The greatest limitation is global production, with a huge number of US allies and partners in the queue to get access to this technology right now.

Australia faced the “most complex geo-strategic environment since the Second World War.” The investment in these world-leading, high-tech missiles is another example of the Albanese Government moving fast to keep Australians safe, deter any adversary, and defend Australia’s national interests in the missile age. Australia was the first country, other than the United States, to fire the SM-6 missile, underscoring the strength of our alliance.

As Australia faces the “most complex geo-strategic environment since the Second World War,” the government is investing $54b to more than double the size of the nation’s warship fleet from 11 to 26 by the mid-to-late-2040s. The SM-2 IIIC features active seeker technology and increases the Navy’s ability to defend against missile attacks.