The governments of Australia and the United States have signed a Memorandum of Understanding (MoU) for the production, sustainment, and joint development of the Precision Strike Missile (PrSM), marking a key step in strengthening the long-range strike capabilities of the Australian Defence Force (ADF) and promoting domestic industry participation in one of today’s most significant missile programs.
As announced by the Australian Department of Defence, the agreement establishes Australia’s full participation as a cooperative partner in the PrSM program. To this end, Canberra will allocate approximately USD 202 million over the next ten years, along with an additional USD 98 million for the initial acquisition of missiles intended to equip the first Long Range Fires Regiment. This unit is part of Australia’s broader strategy to acquire capabilities that ensure credible deterrence in an increasingly volatile strategic environment.
The MoU was signed on the sidelines of the recent Shangri-La Dialogue and grants the ADF access to PrSM munitions while opening the door for local companies to participate in the system’s production chain, including the manufacturing of components and subcomponents. According to official sources, negotiations are expected to begin later this year on the potential for final missile assembly and sustainment to take place in Australia.
Cooperation between the two countries on the PrSM is not new. As early as 2021, Australia and the United States agreed to move forward with the joint development of this precision-guided munition, laying the groundwork for future regional production and sustainment. In mid-2024, both sides also began exploring options for eventual co-production and deeper Australian industrial involvement, highlighting that this latest announcement is part of a long-term strategic plan.
The agreement also aligns with Australia’s recent acquisition of its first HIMARS (High Mobility Artillery Rocket System) launchers—a platform compatible with the PrSM, which is set to replace the U.S. Army’s current ATACMS missiles. The PrSM will significantly enhance HIMARS with precise, highly lethal strike capabilities at ranges exceeding 500 kilometers. According to official statements, Canberra has already received an initial batch of these launchers and is expected to procure additional units in the near future, positioning the PrSM as a cornerstone of the country’s new long-range fires concept.
You may also like: After delays, Australia has finally begun the transfer of its M1A1 Abrams tanks to the Armed Forces of Ukraine
