Australia to Build $1.7 Billion Autonomous Underwater ‘Ghost Shark’ Drones

US defence company Anduril has won the $1.7 billion contract to develop the drones for the Australian Navy.

The Chinese ship, the bulk carrier Yi Peng 3 (R) is anchored and being monitored by a Danish naval patrol vessels in the sea of Kattegat, near the City og Granaa in Jutland, Denmark, on Nov. 20, 2024. Denmark's navy said on Nov. 20, 2024 it was shadowing a Chinese cargo vessel in the Baltic Sea, a day after Finland and Sweden opened investigations into suspected sabotage of two severed undersea telecoms cables. "The Danish Defence can confirm that we are present in the area near the Chinese ship Yi Peng 3," the military wrote in an email to AFP, adding that it would make no further comment for the time-being. Mikkel Berg Pedersen/Ritzau Scanpix/AFP via Getty Images

Australia is set to acquire a new fleet of autonomous undersea drones known as Ghost Sharks for the Royal Australian Navy.

The Albanese Labor government has awarded a $1.7 billion (US$1.1 billion) contract to Anduril Australia, the local arm of U.S. defence firm Anduril.

The Ghost Shark drones are essentially autonomous underwater robots that can travel independently to watch for enemies, gather information, and carry out strikes if needed.

“This is a profoundly important capability for the Royal Australian Navy. Today, the contract that we are engaging in with Anduril Australia will see dozens of these units built for the Royal Australian Navy,” Deputy Prime Minister and Defence Minister Richard Marles told reporters in Sydney.

Marles was careful not to reveal the exact number of Ghost Sharks that will be built. However, they will be manufactured at Anduril’s Australian facility in Sydney, New South Wales.

“We’re not being more specific than that—given the stealth nature of Ghost Sharks, we do not want to put out there the precise number.”

Marles said the contract would support 120 existing jobs at Anduril Australia and generate 150 new jobs at Alexandria.

“This is the culmination of three prototypes of Ghost Shark having already been built and it demonstrates an exquisite capability which has been designed, developed, prototyped, and now being manufactured here in Australia,” he said.

Threat of Chinese Naval Assets

Anduril highlighted the challenge posed by foreign naval activity near Australia and how the Ghost Shark could solve this problem.

“For years, Australia has faced the persistent and threatening presence of Chinese naval assets in its home waters,” the company said.

“Ghost Shark is the instantiation of a Program of Record for Autonomous Underwater Vehicles (AUVs) that can directly address this challenge through coastal defense patrols and area-wide domain awareness powered by artificial intelligence at scale.”

Anduril said the production of the fleet of Ghost Sharks was already underway.

“The Ghost Shark program is the direct outcome of a bold decision by the Royal Australian Navy to take on shared risk in pursuit of speed and capability.”

The federal government has already spent $140 million to enable Anduril to develop the Ghost Shark platform.

Defence Industry Minister Pat Conroy highlighted the importance of a strong navy to Australia’s national security and safety.

“At the same time, we’re seeing the rise of AI and autonomy and drones. So today’s announcement is a culmination of three years’ effort of the Australian government and Anduril Australia in their supply chain,” he said.

He said this contract was all about adding a lethal, autonomous capability to the Royal Australian Navy.

“This $1.7 billion contract is to further develop the Ghost Shark, to conduct much more research and development and to build dozens of these essential capability for the Royal Australian Navy, as well as sustaining the fleet that will be created,” Conroy said.

“This is a world-class capability that has the capability to conduct intelligence, surveillance, reconnaissance and strike at extremely long distances from the Australian continent.”

Conroy highlighted the Ghost Shark would be able to strike at extremely long distances from the continent of Australia.

“They can be launched from ships or from containers around the Australian mainland. And this is, as the deputy prime  inister said, a truly sovereign capability.”

CCP Also Developing Undersea Uncrewed Drones

Meanwhile, Shadow Defence Minister Angus Taylor recently highlighted that Australia is facing the most “dangerous times since the Second World War.”

Specifically, he highlighted that undersea autonomous drones showcased at the recent Chinese Communist Party (CCP) military parade, including the uncrewed underwater AJX-002 Giant Submarine Drone.

“I mean, you know the weaponry we are now seeing, missiles that can reach Australia, can reach the United States, undersea autonomous drones,” he said on 2CC on Sept. 4. 

“I mean, you name it, it was there, and it was designed as a show of strength by the Chinese Communist Party who, you know, obviously have clear ambitions. They’ve said that. That’s unambiguous over Taiwan.”