This week, Anduril Industries, a US defense technology startup, has won its biggest deal yet—AUS$1.7 billion (US$1.1 billion)—with the Australian government. They’re using these waters to test and deploy their XL uncrewed undersea vehicle, aka the “Ghost Shark.” This contract is both a huge win for Anduril and a major step for Australia’s defense modernization efforts. This allows rapid incorporation of bespoke payloads, dramatically increasing operational agility.
The contract’s five-year award structure promised a river of recurring revenue for Anduril. The need for this new undersea drone was made all the more pressing by the rapidly-increasing tensions in the Indo-Pacific region. The increasing danger posed by China makes this urgency even greater.
In an interview following the announcement, Anduril’s President Chris Brose underscored Australia’s remarkable speed at which they are moving to operationalize the Ghost Shark. He lauded that the country has done what the U.S. Navy has struggled to do over the past 10 years. Anduril soldiered on and provided the first Ghost Shark prototype in April 2024, 12 months early. This accomplishment highlights their deep dedication to satisfying Australia’s fast-moving acquisition timeline.
Production of the Ghost Shark has already started, but a series of important things happened at once. Anduril has developed a U.S. payload for testing off the California coast. In addition, they are establishing a second 150,000 square foot plant in Rhode Island to build Ghost Sharks, if more contracts are won.
Brose highlighted the disparity in resources and bureaucratic hurdles between Australia and the United States. He lauded Australia’s incredible feat of taking the Ghost Shark from idea to contract in only three years.
“At the end of the day, this comes down to having seriousness, having imagination, and having will to conceive a new idea and bring it to fruition. And that’s what the Australian government has done,” – Chris Brose, President of Anduril Industries.
On a recent visit to Australia, Shane Arnott, Anduril’s Senior Vice President of Maritime, applauded Australia’s commitment to innovation. He focuses on the innovative ways these strategies are increasing the nation’s defensive capabilities. Delivering on the promise of an adaptable maritime platform, the Ghost Shark’s modular designs allow governments to optimize the craft to their specific missions. They can easily swap out various payload modules to suit their needs.
Brose pointed to a key contrast between the Australian government’s efforts and that of the United States. He pointed out that even though the U.S. has invested much more in its XLUUV program, it’s still behind. He stated,
“The United States has had an XLUUV program that has been struggling for the better part of a decade. It has spent a significantly greater amount of money on that program than the Australian Government and Anduril have spent developing the Ghost Shark capability, and it’s further behind.”
The Ghost Shark is more than just a fancy surveillance camera. Anduril has developed it for multi-domain missions, underscoring that it has a wider operational scope than other alternatives on the market.
“We have spent more time in, on, and under the water. We have an ability to work across more missions. We are more ready to go. We are more ready to deliver at scale, and we will do all of that at a lower price,” – Chris Brose.
In the new year, the Ghost Shark will begin its regular patrols in Australian waters. This is a historic step for Australia’s maritime defense posture.
