Government invests $2.4bn in next stage of air and missile defence

This investment will be made over six years through Defence’s existing strategic partnership with Lockheed Martin Australia, providing more than 360 highly skilled jobs in both the Hunter Region and South Australia, and supporting the Australian Defence industry.

The foundation of this project is the Joint Air Battle Management System, a system that connects information and capabilities from across the Australian Defence Force into a single, effective network, providing a better view of the battlespace and helping commanders make faster, better informed decisions.

Under Tranche 2B, Lockheed Martin Australia, together with the Department of Defence and Australian industry, will enhance AIR6500’s core architecture with advanced C2 aids, expanded comms, and cyber security to maintain resilient, networked sensor and C2 capabilities that can sense and track incoming threats and integrate with the Australian Defence Force’s targeting enterprise, allies and partners.

“This contract confirms the Australian government’s confidence in Australian Defence industry’s capacity to deliver world‑class, Australian‑built capabilities that are trusted to protect our nation and its allies,” said Lockheed Martin Australia and New Zealand’s chief executive, Jeremy King.

“Lockheed Martin Australia remains firmly committed to continue partnering with primes, small-to-medium enterprises, and academia to source the best‑of‑breed technologies, delivering a sovereign solution that strengthens Australia’s industrial self-reliance and prosperity.

“The next phase of AIR6500 fortifies the core of Australia’s integrated air and missile defence … AIR6500 enhances the joint force by bringing all ADF defence assets together on a scalable, resilient, and collaborative platform. It gives us clearer cross‑domain awareness and a more effective way to respond to air and missile threats.”

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The $2.4 billion investment will replace the existing system and modernise air surveillance and aircraft control functions while supporting the coordination of Defence operations in Australia and overseas.

“Today’s announcement is seeing the Albanese government once again supporting well-paid, secure Australian jobs and backing Australian Defence industry,” said Deputy Prime Minister Richard Marles.

“AIR 6500 is a landmark investment in Australia’s air and missile defence and will help ensure the Australian Defence Force can respond effectively to future threats and deliver on the priorities of both the National Defence Strategy and the Defence Industry Development Strategy.

“The project will upgrade the command and control systems needed to strengthen the Australian Defence Force’s ability to detect, track and respond to threats in an increasing complex strategic environment.”

The capability will connect current and future Defence platforms, including Hobart Class destroyers, the F-35A Lightning II aircraft, and the accelerated medium-range ground-based air defence system.

This will strengthen Australia’s ability to operate as an integrated force and detect, track and respond to increasingly sophisticated air and missile threats.

With the capability designed and built in Australia, the Albanese government is once again prioritising Australia’s sovereign defence industrial base and supporting well-paid, secure and highly skilled local jobs.

“The Defence Industry Development Strategy recognises that Australia’s security depends not only on the capabilities we acquire, but also on our ability to design, sustain and evolve them here in Australia,” said Minister for Defence Industry Pat Conroy.

“Through AIR 6500, we are delivering a world-class command and control capability while strengthening Australia’s sovereign industrial base, growing a highly skilled workforce and retaining critical integrated air and missile defence expertise in Australia.

“The Australian government’s investment directly supports more than 360 highly skilled jobs, Australian jobs helping build the workforce, expertise and industrial capability Australia needs into the future.”