Australia Awards $1.12 Billion Contract to Anduril for Ghost Shark Submarines

Australia has awarded Anduril Australia a roughly US$1.12 billion (A$1.7 billion) contract to develop and deliver a fleet of Ghost Shark extra-large autonomous underwater vehicles (AUVs) for the Royal Australian Navy. Under the five-year deal the first Ghost Shark vehicles are expected to enter service in January 2026, a remarkably quick turn around, with dozens more expected to join them over the next few years. The contract builds on a 2022 co-development program that produced three prototype XL-AUVs on schedule. Defence Minister Richard Marles praised Ghost Shark as “a world-leading platform made right here in Australia that will equip the Navy with next-generation intelligence, surveillance and strike capabilities”.

The Ghost Shark XL-AUV is powered by an all-electric propulsion system for long-endurance missions without surfacing, preserving stealth and maximizing time on station. It is designed for wide-area ISR and precision strike in contested waters, complementing Australia’s future surface ships and submarines. Anduril Australia says the vehicle can carry multiple modular payloads – including sensors, communications relays or weapons – and that its autonomy software will continually evolve with new payloads and smarter AI algorithms as threats emerge. The AUVs are also highly transportable: RAN officials note that Ghost Sharks can be launched from shore bases or surface ships and even airlifted by C-17 aircraft, giving commanders flexible deployment options.

The Ghost Shark can carry out intelligence, surveillance, reconnaissance, and strike missions from underwater. (Picture Source: Australian MoD)

Officials emphasize that the Ghost Shark program will boost Australia’s undersea warfare edge and sovereign industry. The Defence Department says the uncrewed vessels will provide an “asymmetric capability advantage,” complementing planned AUKUS nuclear submarines and surface combatants. The vehicles are being built in Australia to foster a sovereign maritime capability and potential exports. Minister for Defence Industry Pat Conroy noted that all three development prototypes were delivered on budget and ahead of schedule. He said the new contract will sustain about 120 existing Anduril Australia jobs while creating roughly 150 new high-skilled positions. More than 40 Australian companies are involved in the supply chain, supporting some 600 jobs in the local defence sector.

Autonomous undersea vehicles like Ghost Shark are becoming a key part of modern naval strategy. Unmanned underwater systems offer persistent, stealthy surveillance and strike capabilities across vast ocean areas. Australia’s own Defence Science and Technology Group points out that the nation’s huge coastline and northern approaches must be secured despite a relatively small population, underscoring the value of unmanned undersea systems. According to Deputy PM Marles, Australia has become “a global leader in autonomous underwater military capabilities.” Ghost Shark can now carry out intelligence, surveillance, reconnaissance, and strike missions from underwater.