Australia Beats US Navy’s Long-Standing Challenge: Launching Stealthy Undersea Drone Fleet in Three Years for $1.7 Billion

In an unprecedented achievement, defense technology company Anduril has partnered with Australian authorities to transition a large-scale underwater drone from concept to contract in just three years. This milestone, which marks a significant leap forward in the country’s maritime surveillance and strike capabilities, was announced on Tuesday.

Under a AUS$1.7 billion (approximately US$1.1 billion) contract, Anduril’s fleet of XL uncrewed undersea vehicles (XLUUV), known as “Ghost Sharks,” will commence operations in Australian waters by next year. The five-year contract encompasses delivery, maintenance, and ongoing development of the platform, establishing it as a key component in Australia’s defense budget.

The agreement underscores the political urgency in Australia to bolster its capabilities in the Indo-Pacific region, particularly in response to the growing threat from China.

Chris Brose, President of Anduril, commended the Australian government for demonstrating seriousness, imagination, and determination in bringing this innovative idea to fruition. He highlighted that despite having fewer resources and similar bureaucratic challenges as the U.S. Pentagon, Australia has managed to achieve this milestone.

In contrast, the development of Boeing’s Orca XLUUV is significantly delayed compared to Ghost Shark, which was co-developed and jointly funded by Anduril and Australia in 2022, with each party contributing $50 million. The first prototype was delivered ahead of schedule in April 2024, and production has already commenced.

This program represents a groundbreaking approach to defense procurement. Anduril invested its own capital to mitigate the risks associated with Australia’s accelerated acquisition timeline.

Anduril is not limiting its efforts to Australia. SVP of Maritime, Shane Arnott, revealed that Ghost Shark can be quickly adapted to accommodate various payload modules depending on the country’s needs. Anduril has already developed a U.S. payload for testing off the California coast and established a 150,000-square-foot factory in Rhode Island to produce Ghost Sharks domestically if required by a contract.

Brose noted that the U.S.’s XLUUV program has faced challenges for over a decade, despite investing significantly more resources than the Australian-Anduril partnership. He emphasized that Anduril has spent more time in, on, and underwater, is capable of performing across various missions, and is ready to scale up production at a lower cost.

For Australia, the need for advanced maritime capabilities is evident due to its geographical position as the largest island nation with a small population and proximity to potential adversaries. China, which has aggressively expanded its navy and ventured deeper into the Pacific, poses a significant threat, making Ghost Shark an attractive solution.