Australia Ghost Sharks China strategy involves deploying advanced underwater drones to counter China’s expanding military influence in the Pacific region. The Australian Government has committed AU$1.7 billion (US$1.1 billion) to this cutting-edge defence initiative, with the first drone scheduled to enter service as early as January.
These advanced Australian Ghost Shark vessels are no ordinary underwater craft. Based on a 5.8-metre-long, 2.7-tonne prototype, they can operate autonomously for up to 10 days and reach impressive depths of 6,000 metres. Furthermore, Defence Minister Richard Marles has described them as “the highest tech capability in the world”. The five-year contract with Anduril Australia will also create 150 jobs while strengthening the nation’s military capabilities during what officials describe as the most complex strategic landscape since the Second World War.
Australia’s £1.7bn Ghost Shark Deal
The Royal Australian Navy has formally awarded a AUD 2.60 billion (£1.7bn) contract to Anduril Australia for the delivery, maintenance and continued development of the Ghost Shark fleet over the next five years. This significant investment follows approximately AUD 214.06 million, which the Australian Government had previously committed to developing the Ghost Shark platform, payloads, and production facilities since establishing a collaborative contract with Anduril in 2022.
Defence Minister Richard Marles announced the contract on Wednesday, describing the Ghost Shark as “a world-leading platform made right here in Australia”. Although officials remain deliberately vague about exact numbers, Marles confirmed the Navy will acquire “dozens” of these autonomous underwater vehicles, with the first units scheduled to enter service in January 2026.
The contract represents a remarkable achievement in defence procurement. It went from concept to production in less than three years through an innovative co-development approach between the Royal Australian Navy, Defence Science and Technology Group, and Anduril.
Additionally, the economic benefits extend beyond military capability. The five-year agreement will support approximately 120 existing jobs and create more than 150 new highly-skilled positions at Anduril Australia. Moreover, with over 40 Australian companies currently involved in the Ghost Shark supply chain, a further 600 jobs are expected to be generated through this investment.
Anduril has already invested AUD 91.74 million in a sophisticated robotic manufacturing facility in Australia specifically for Ghost Shark production. The company has delivered all three prototype vessels on schedule and on budget.
Ghost Shark a Strategic Counter to China
The Ghost Shark fleet emerges amid what Australian officials describe as a “permanent contest” with China in the Pacific. Following a Chinese naval flotilla circumnavigating Australia and conducting live-fire exercises in the Tasman Strait in March, concerns about Australia’s maritime surveillance capabilities have intensified.
Anduril, the company behind the Ghost Shark Deal, explicitly stated that “for years, Australia has faced the persistent and threatening presence of Chinese naval assets in its home waters” and that autonomous vehicles like Ghost Shark “can directly address this challenge through coastal defence patrols”. This capability comes at a critical time as Australia undergoes a major military restructuring focused on bolstering long-range strike capabilities to balance China’s expanding military presence in the Asia-Pacific region.
The AUD 2.60 billion investment in the Ghost Shark Deal is part of a broader strategy that includes deepening ties with Pacific neighbours to prevent Beijing from gaining a permanent security foothold in the region. Indeed, Australian Foreign Minister Penny Wong acknowledged this reality in 2024, stating, “We’re in a state of permanent contest in the Pacific—that’s the reality.”
Nevertheless, some Pacific Island leaders have expressed concern that this strategic competition between major powers could lead to militarisation of their region, particularly as China continues its rapid naval expansion.
How Does Ghost Shark Fit into Australia’s Regional Strategy?
Australia’s evolving defence posture in the Indo-Pacific region relies heavily on the Ghost Shark programme. These autonomous underwater vehicles offer much more than just new hardware to the nation’s defence capabilities.
Integration with AUKUS and Allied Forces
The Ghost Shark programme strengthens the AUKUS partnership between Australia, the United Kingdom, and the United States. These vessels work alongside Australia’s nuclear submarine acquisition under Pillar 1 of AUKUS and provide immediate underwater capabilities. The vessels also improve interoperability with allied forces through compatible communications systems and operational doctrine.
Export Potential to the US and Other Allies
We developed the Ghost Shark programme to meet Australian requirements, but its modular design creates valuable export opportunities. The United States Navy wants to acquire variants of this Australian-developed platform to strengthen its unmanned underwater capabilities. This marks a historic shift in defence technology flow, as Australian innovation could serve American military needs.
Defence Treaties with PNG and Pacific Nations
The Ghost Shark capabilities help Australia fulfil its commitments to Pacific Island nations. Recent defence agreements with Papua New Guinea make Australia responsible for maritime surveillance in large areas of the South Pacific. These autonomous vessels provide economical monitoring solutions that help smaller Pacific nations without advanced naval assets.
Implications for Australian Submarine News and Diplomacy
The Ghost Shark programme gives Australia more diplomatic influence in regional forums. The country’s development of sovereign defence capabilities makes it a credible security partner. This technological progress also sends a clear diplomatic message about Australia’s steadfast dedication to regional stability despite Chinese maritime expansion.
Conclusion – Australia Ghost Sharks China
Australia’s Ghost Shark programme undoubtedly marks a watershed moment in the nation’s defence strategy. Through this £1.7 billion investment, the Royal Australian Navy will soon deploy dozens of advanced autonomous underwater vehicles capable of patrolling at depths of 6,000 metres for up to ten days. Consequently, these cutting-edge drones represent not merely technological advancement but a direct response to what officials term “the most complex strategic landscape since the Second World War.”
The significance of this initiative extends beyond military applications. Nearly 150 new highly-skilled positions will emerge at Anduril Australia, while approximately 600 additional jobs across 40 Australian companies will bolster the domestic defence industry. This economic benefit runs parallel to the unprecedented speed of development, with the project moving from concept to production in under three years.
Despite official reluctance to frame the Ghost Shark programme explicitly as anti-China, the timing speaks volumes. Chinese naval flotillas circling Australian waters and conducting live-fire exercises have certainly accelerated concerns about maritime surveillance capabilities. Therefore, these autonomous underwater vehicles arrive at a critical juncture as Australia restructures its military toward long-range strike capabilities.
The broader context involves what Foreign Minister Penny Wong described as a “permanent contest” in the Pacific region. Nevertheless, Australia must balance its security needs against concerns from Pacific Island nations regarding potential militarisation of their waters. Overall, the Ghost Shark programme represents Australia’s most decisive technological response yet to shifting power dynamics in the Indo-Pacific—a calculated step toward securing its maritime borders while demonstrating advanced defence capabilities on the world stage.
What are Ghost Sharks and why is Australia investing in them?
Ghost Sharks are advanced autonomous underwater drones being developed by Australia to enhance its naval capabilities. The Government is investing £1.7 billion in this project to counter the growing military presence in the Pacific region and strengthen maritime surveillance.
How long can Ghost Sharks operate underwater and at what depth?
Ghost Sharks can operate autonomously for up to 10 days and reach impressive depths of 6,000 metres, making them highly capable for extended underwater missions.
Can Ghost Sharks be exported to Australia’s allies?
While there’s no specific information about exporting Ghost Sharks, the drones are being developed as part of Australia’s broader defence strategy. Any potential exports would likely be subject to strict regulations and agreements with allied nations.