Australia Commits to Anduril’s XL Undersea Drone Amid US Program Delays
Australia has secured a significant milestone in undersea defense technology by contracting a fleet of Anduril’s XL uncrewed undersea vehicles (XLUUVs), known as the Ghost Shark, set to begin operations in Australian waters in 2026. The contract, valued at approximately A$1.7 billion (US$1.1 billion), spans five years and covers delivery, maintenance, and continued development, effectively embedding the platform as a recurring line item within Australia’s defense budget.
Accelerated Development and Strategic Urgency
This rapid transition from concept to contract contrasts markedly with the US Navy’s ongoing challenges in advancing its own XLUUV program, Boeing’s Orca, which remains years behind schedule and significantly more costly. Anduril and Australia jointly invested $50 million each in 2022 to develop the Ghost Shark, delivering the first prototype twelve months ahead of schedule in April 2024, with production now underway.
“The Australian government has demonstrated seriousness, imagination, and will to bring a new idea to fruition,” Anduril President Chris Brose stated. He highlighted Australia’s ability to overcome bureaucratic hurdles despite fewer resources compared to the US.
Innovative Procurement Model and Global Ambitions
Anduril’s approach involves deploying private capital to de-risk and expedite acquisition, a model that could reshape defense procurement. The Ghost Shark platform is designed for rapid “missionization,” allowing governments to integrate custom payloads. Anduril is already testing a US payload off California and has established a large-scale manufacturing facility in Rhode Island to support potential US contracts.
Brose emphasized the operational readiness and cost-effectiveness of Ghost Shark compared to the US Navy’s program, citing greater time in operational environments and versatility across mission profiles.
Geopolitical Context: Indo-Pacific Security
Australia’s urgency stems from its strategic position as a large island nation with a small population facing increasing naval assertiveness from China in the Indo-Pacific region. The expansion of China’s navy and provocative maneuvers near Australian waters have underscored the need for advanced, stealthy undersea surveillance and strike capabilities, which Ghost Shark aims to fulfill.
FinOracleAI — Market View
The contract award and accelerated deployment of Anduril’s Ghost Shark XLUUV in Australia represent a positive market development for the defense startup, validating its rapid innovation and procurement model. This milestone positions Anduril favorably for further international contracts, including potential US adoption, as the company has already prepared manufacturing capacity stateside.
Risks include geopolitical uncertainties and the US Navy’s eventual catch-up, which could intensify competition. Close attention should be paid to how quickly Anduril can scale production and integrate diverse payloads to meet varied defense needs.
Impact: positive
