The Albanese Government has taken the next important step towards increasing the Australian Defence Force's long-range strike capabilities and supporting domestic defence industry, with the establishment of a new cooperative program with the United States for the Precision Strike Missile (PrSM).
Australia and the United States have signed a Memorandum of Understanding for PrSM production, sustainment and follow-on development.
The MoU provides the ADF access to PrSM munitions and establishes PrSM as a cooperative program between Australia and the United States. This opens the door for Australian industry participation in the PrSM supply chain, including for locally manufactured components and sub-components.
The MoU also provides options for future domestic manufacturing and maintenance of PrSM in Australia, with negotiations on options expected to commence later this year.
Deputy Prime Minister Richard Marles and United States Secretary of Defense Pete Hegseth welcomed the signing of the MoU during their meeting on the sidelines of the Shangri‑La Dialogue, building on the outcomes of the 2024 Australia United States Ministerial Consultations (AUSMIN).
PrSM is a next generation surface-to-surface missile that can deliver potential effects at longer ranges, providing enhanced lethality to Defence's integrated and focused joint force.
The missile can be fired from High Mobility Artillery Rocket System (HiMARS) launch vehicles. The first of these vehicles arrived in Australia in March 2025, giving the Australian Army a world‑leading strike capability.
Defence is contributing approximately $310 million over 10 years to become a full cooperative partner in the PrSM program. Defence will also invest around $150 million over the next five years to acquire the initial quantities of the capability required to establish the first Long Range Fires Regiment.
Quotes attributable to Deputy Prime Minister, The Hon Richard Marles MP:
"Australia's capability and technology cooperation with the United States is a critical part of our Alliance.
"The Albanese Government's investment in the Precision Strike Missile will expand and accelerate land-based long-range strike capabilities.
"This will enable deterrence against potential threats and ensure the Australian Defence Force is equipped to meet our strategic circumstances and keep Australians safe."
Quotes attributable to Minister for Defence Industry, The Hon Pat Conroy MP:
"This demonstrates our commitment to deliver on priorities outlined in the 2024 National Defence Strategy, to accelerate acquisition of long-range land and maritime strike capabilities and adopt a Strategy of Denial.
"Through this cooperative program, the Australian Army will contribute to and acquire the latest technology required to counter current and future threats.
"This is another example of the Albanese Government working with the United States to increase opportunities for Australian industry in global supply chains."
