Australia Achieves Breakthrough with Anduril’s Ghost Shark XLUUV: A US$1.1 Billion Defense Contract for Long-Range, Stealthy Surveillance and Strike Operations
In a significant development, defense technology firm Anduril has secured a major contract worth AUS$1.7 billion (approximately US$1.1 billion) to deploy its XL uncrewed undersea vehicle (XLUUV), named “Ghost Shark,” in Australian waters starting from next year.
The five-year contract encompasses delivery, maintenance, and ongoing development of the platform, which offers long-range, stealthy surveillance and strike capabilities. This program of record is a significant milestone for Anduril, as it ensures recurring revenue by becoming a line item in Australia’s defense budget.
The swift execution of this project underscores the Australian government’s determination to bolster its Indo-Pacific capabilities amidst the rising threat from China. Speaking on the matter, Anduril President Chris Brose commended the Australian government for their tenacity and vision, stating, “Australia has fewer resources but has managed to achieve this in a remarkably short timeframe.”
In contrast, the development of Boeing’s Orca XLUUV is behind schedule compared to the rapid progress made by Anduril and Australia. The partnership between these entities began in 2022, with each contributing $50 million towards co-development and joint funding. The first prototype was delivered a year ahead of schedule, and production has already commenced.
This collaborative approach presents a novel model for defense procurement, with Anduril taking on some financial risk to expedite Australia’s acquisition timeline. Furthermore, Ghost Shark is adaptable, allowing governments to customize their payload modules as needed. Anduril has already developed an American payload and established a 150,000-square-foot factory in Rhode Island for domestic production if required.
Speaking about the U.S.’s progress with XLUUVs, Brose highlighted, “The United States has been working on an XLUUV program for nearly a decade, spending considerably more than what Australia and Anduril have invested in Ghost Shark development, yet it is still behind.” He further emphasized Anduril’s readiness to deliver at scale and do so at a lower cost.
For Australia, the urgency is palpable given its status as the largest island nation with a small population and proximity to potential adversaries. China, in particular, has been expanding its naval presence and conducting provocative exercises off the Australian coast, making Ghost Shark an attractive solution.
