Australia Touted as Future Weapons Supplier for US Under $21 Billion Plan: Report

Analysts say deeper defence industrial ties could reduce per-unit costs while filling critical stockpile gaps exposed by global conflicts.

U.S. Secretary of State Marco Rubio shakes hands with Australia's Foreign Minister Penny Wong at the State Department in Washington, DC, on July 1, 2025. Allison Robbert/AFP via Getty Images

Australia could become a supplier of weapons and munitions for the United States under a new radical proposal designed to better equip the world’s largest military to deal with any threat in the Indo-Pacific.

The Guided Weapons and Explosive Ordnance (GWEO) Enterprise, developed in partnership with the United States, is geared towards building local production facilities for missiles and munitions in Australia.

Launched in 2021, the project is backed by a government commitment of $16–21 billion over the next decade.

Despite some progress—including the release of the Australian government’s GWEO Plan in late 2024—the project still faces obstacles.

As a result, its growth has not kept pace with the region’s worsening security situation, according to the new report titled, “Partnering for forward deterrence in the Indo-Pacific: Overcoming barriers to U.S.-Australia cooperation on Australia’s GWEO Enterprise,” by the University of Sydney’s U.S. Studies Center.

Recommendations for US and Australia

The report, led by Dr Cynthia R. Cook, a senior fellow at the Center for Strategic and International Studies, urges the U.S. government to recognise the value of putting more resources into the GWEO.