Australia is teaming up with the United States to codevelop the Precision Strike Missile, a long-range surface-to-surface weapon that could expand its strike capabilities. The new defense agreement also opens the door to local manufacturing and supply chain roles.
The June 6 agreement makes Australia a full partner in the U.S.-led program, providing access to the cutting-edge PrSM system, which can hit high-value targets hundreds of miles away.
How will this affect Australia’s defense capabilities?
PrSM can be launched from High Mobility Artillery Rocket Systems, or HIMARS, which the Australian army received in March. The system allows for deep-strike capability from mobile platforms, and the new missile extends the range of its predecessor, the ATACMS.
The missile’s Increment 1 variant is compatible with both the wheeled HIMARS and the tracked M270 Multiple Launch Rocket Systems and is designed to strike fixed, high-value targets beyond 250 miles with sub-meter precision.
According to the Army Recognition Group, the PrSM Increment 2, currently under development, will feature a multi-mode seeker designed to engage moving and maritime targets, including ships and mobile air defense systems. The seeker may use imaging infrared, active radar or semi-active laser guidance. Increment 2 also increases the missile’s range to more than 310 miles.
Increment 3, a future concept, aims to extend the missile’s range up to 620 miles or more through enhanced propulsion and improved aerodynamics. It is designed to bridge the gap between tactical and theater-level strike systems and seeks to improve improve lethality in strategic operations.
Will Australia manufacture PrSM components locally?
The memorandum establishes PrSM as a cooperative program between the two countries, allowing for Australian industry participation in the global supply chain. Australian companies may contribute components and sub-systems for the missile, and talks on domestic manufacturing are expected to begin later this year. The agreement also enables local maintenance and sustainment work.
Australia is investing about $310 million over 10 years to support the partnership and contribute to ongoing development. An additional $150 million will be allocated toward acquiring initial missile stocks and establishing the country’s first “Long-Range Fires Regiment.”
What have officials said about the partnership?
Deputy Prime Minister and Defence Minister Richard Marles said that the missile program builds upon the 2024 Australia-U.S. Ministerial Consultations and reflects Canberra’s strategic commitment to strengthening deterrence.
“Australia’s capability and technology cooperation with the United States is a critical part of our alliance,” Marles said. “The Albanese government’s investment in the Precision Strike Missile will expand and accelerate land-based long-range strike capabilities.”
He also noted that this investment supports goals outlined in Australia’s 2024 National Defence Strategy, including a shift toward a “Strategy of Denial” through enhanced land-based precision fires.
Minister for Defence Industry Pat Conroy said the agreement also benefits Australia’s defense sector.
“This is another example of the Albanese government working with the United States to increase opportunities for Australian industry in global supply chains,” Conroy said. He added that the partnership demonstrates Canberra’s push to accelerate the acquisition of strike weapons and deepen industrial ties with the U.S.
