$1 Billion AUD Defense Deal Reached in Berlin
Australian Prime Minister Anthony Albanese’s visit to Germany ahead of his visit to the NATO Summit in Vilnius saw some significant developments. First and foremost, announced on Monday, 10 July, Australia has signed a defence deal with Germany valued at $1 billion AUD [$688 million USD]. This defence deal specifically is for the production of 100 Boxer Heavy Weapon Carriers for the German Military. The armored fighting vehicle, to be designated the “schwerer Waffenträger Infanterie” (sWaTrInf) will be developed based off the Australian Army’s Boxer CRV. It will feature a two-man lance turret armed with the Rheinmetall MK30-2 ABM automatic cannon.
Germany intends to use the vehicle as a replacement for the “Wiesel” Armoured Weapons Carrier, operating it in a dedicated fire support role for infantry units. The project has been funded from the Bundeswehr’s special fund, with hopes of the vehicle being quickly procured by 2025. For Australia, the agreement is monumental as it marks one of the largest-ever defence export contracts. Although Rheinmetall is a German company it intends to leverage its production capacities in Redbank, Queensland. This will provide 1,000 Australian jobs and contribute over $1 billion AUD to the Australian economy.
Prime Minister Anthony Albanese commented that “the agreement will boost Australia’s sovereign defence industry, secure local jobs and contribute to Australia’s economic growth.” While German Chancellor Olaf Scholz said during a joint press conference “I am very happy about the agreement on the Boxer that was just concluded. It highlights our firm wish to deepen our strategic cooperation, as close partners in values.” For both nations, the deal has met high praise, seen as an effective strengthening of relations. A significant contribution towards the German Bundeswehr’s rearmament and Australia’s economy.