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Australia to spend billions on drones as warfare changes

Natalie Fisher by Natalie Fisher
April 13, 2026
in Business
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The use of cheaper drones mass produced by Iran in the Middle East and Ukraine conflicts has prompted the decision to also boost spending on smaller drones and counter-drone systems. ©AFP

Sydney (AFP) – Australia will boost spending on drones by up to Au$5 billion ($3.6 billion) in response to shifts in warfare seen in the Middle East, Defence Minister Richard Marles said Tuesday.

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Australia’s vast coastline and small population have spurred a focus on developing large autonomous submarines and fighter jets, dubbed the Ghost Shark and Ghost Bat. The use of cheaper drones mass produced by Iran in the Middle East and Ukraine conflicts has prompted the decision to also boost spending on smaller drones and counter-drone systems, Marles said in an ABC radio interview. “We look at what’s happening in the Middle East right now — you need counter-drone technology as well,” he said.

Australia will spend Au$12 billion to Au$15 billion over the next decade on autonomous capabilities, Marles said ahead of an update to the national defence strategy to be released Thursday. “Clearly, autonomous systems now are really central to how contest happens, how war happens,” he said. Australia needed the full spectrum of drone capabilities for its defence because of its geography, Marles said. “What you get at the smaller end is mass — you know, lots of units — and that’s what we are seeing play out in Ukraine,” he added.

Wary of China’s navy build-up, US ally Australia has reshaped its defence force in recent years to focus on its missile strike capability and deterring an adversary from its northern approaches. Its AUKUS defence partnership with the United States and Britain aims to transfer nuclear-powered submarine technology to Australia next decade.

Germany said last month it is considering Boeing’s Australian-developed Ghost Bat, designed to fly alongside a fighter jet and return to base, as it modernises its air force.

© 2024 AFP

Tags: defensedronesMiddle East
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