Australia Commits A$1.7 Billion to Ghost Shark Autonomous Submarine Fleet

SYDNEY, September 10, 2025 : Australia has taken a decisive leap forward in undersea warfare, signing a A$1.7 billion (approximately US$1.1 billion) contract with Anduril Australia to manufacture a fleet of Ghost Shark extra-large unmanned undersea vehicles (XLUUVs) for the Royal Australian Navy (RAN). The deal, announced on September 10 and finalized on August 26, marks a five-year program for delivery, sustainment, and expansion of this advanced undersea capability.

Rapid Move from Prototypes to Production

The Ghost Shark program began in 2022, with three prototypes delivered ahead of schedule as part of Australia’s Advanced Strategic Capabilities Accelerator (ASCA). Early government and industry investment of A$145 million, followed by an additional A$40.2 million last year, allowed for accelerated testing and readiness for mass production. A new production facility in Sydney is already active, and the first production models are expected to enter service as early as 2026.

Capabilities and Strategic Significance

The Ghost Shark is designed for long-endurance intelligence, surveillance, reconnaissance, and strike missions without the need for human crews. These stealthy, all-electric submarines can carry multiple mission payloads, making them highly adaptable for a range of undersea operations.

Defence Minister Richard Marles described the Ghost Shark as a “world-leading platform made right here in Australia,” emphasizing its role in strengthening national security and giving the Navy a rapid operational boost compared to traditional submarine programs like AUKUS, which will not deliver nuclear-powered boats until the 2030s.

Analysts have noted that the Ghost Shark is not only cost-effective compared to crewed submarines but also provides a scalable, expendable platform in contested waters—making it a potential game-changer in modern naval strategy.

Industrial and Economic Impact

The program is also a major win for Australia’s defense industry. Over 42 Australian firms are currently contributing to the supply chain, with production expected to support more than 270 jobs in high-tech defense manufacturing. Beyond domestic needs, there is growing potential for exports to close allies such as the United States, United Kingdom, Japan, and Singapore, reinforcing Australia’s position as a hub for autonomous undersea technologies.

David Goodrich, Executive Chairman and CEO of Anduril Australia, credited the success of the program to “close collaboration between defence and industry” and highlighted the shared-risk model that enabled such rapid development.

Transforming Naval Power

Defence strategist Dr. Ross Babbage, CEO of the Strategic Forum, stressed that systems like Ghost Shark could “dramatically reshape underwater warfare,” noting that the ability to deploy large numbers of autonomous submarines is now a real priority for Australia’s defense posture.

The initiative aligns with Australia’s National Defence Strategy, which has placed uncrewed systems at the forefront of future naval capability. Alongside the Ghost Bat aerial drone and upcoming Sea Archer surface vessel, the Ghost Shark represents a layered, multi-domain approach to maritime security.

Australia’s Ghost Shark fleet is set to deliver operational capability within the next year, decades ahead of nuclear submarines. With cutting-edge stealth, surveillance, and strike potential, combined with strong industrial backing, the Ghost Shark marks a turning point in Australia’s push toward autonomous naval power.