Australia increases presence in Indo-Pacific seas with $1.7bn Ghost Shark autonomous submarines deal.

On September 9, 2025, Anduril announced that Australia had advanced the Ghost Shark program into a Program of Record following the award of an A$1.7 billion (US$1.12 billion) contract to Anduril Australia for the delivery, maintenance, and further development of the system over the next five years. The announcement confirms that production has already commenced, with the first units of the extra-large autonomous undersea vehicle (XL-AUV) scheduled to enter Royal Australian Navy (RAN) service in January 2026.
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The Ghost Shark uses swappable sections and sealed pressure zones within a largely flooded volume, which differs from a crewed pressure-hull approach and is intended to simplify integration of payloads and sensors. (Picture source: Australian MoD)

This decision comes after a three-year co-development phase launched in 2022 with Anduril, the Defence Science and Technology Group (DSTG), and the Advanced Strategic Capabilities Accelerator (ASCA), which successfully delivered three prototypes ahead of schedule and within budget. Officials note that the program builds upon earlier government investments of approximately A$140 million in platform development, payload integration, and production infrastructure. The origins of the Ghost Shark program lie in a co-funded initiative that sought to rapidly produce sovereign uncrewed undersea vehicles for Australia.

The first prototype, referred to as the Alpha variant, was delivered twelve months ahead of schedule, and subsequent Bravo variants incorporated lessons learned from early trials. Anduril also developed a fourth prototype at its own expense, which was flown by the Royal Australian Air Force C-17A to the United States in 2024 for additional trials in support of the RAN program. The design and testing cycle was structured to compress timelines, with all three contracted prototypes completed by mid-2025, enabling the government to move directly from development to full-rate production. Statements by the Minister for Defence Industry and the Deputy Prime Minister indicate that the decision to proceed reflects confidence in the prototypes’ ability to meet capability requirements while staying within cost and schedule parameters.

Manufacturing is concentrated at a new A$40.2 million facility in Sydney, which has been established to produce Ghost Shark and its civilian counterpart, the Dive-XL. Low-rate initial production has already begun, with high-rate production expected in 2026. The supply chain involves more than 40 Australian companies and supports approximately 120 existing employees at Anduril Australia, while the government estimates that more than 150 additional skilled jobs will be created at the company, alongside up to 600 jobs across the broader supply chain. This expansion was supported by a Defence Early Works Contract valued at A$20.1 million, which facilitated investment in hiring, scaling suppliers, and preparing infrastructure to ensure a seamless transition from prototype to production. The Albanese Government has linked the investment to industrial development and sovereign capability, emphasizing that the manufacturing process and much of the supply chain remain based in Australia.

The Ghost Shark is a stealthy, long-range, modular XL-AUV capable of conducting persistent intelligence, surveillance, reconnaissance (ISR), and strike missions. Unlike conventional crewed submarines, it does not rely on a single pressure hull but uses a flooded design with sealed compartments housing propulsion, navigation, and payload systems. This arrangement is intended to increase endurance, enable operations at greater depths, and provide flexibility in integrating various payloads. The vehicle is electrically powered, propeller-driven, and substantially larger than Anduril’s earlier Dive-LD, with estimates placing its length above 5.8 meters and height above two meters. It integrates Anduril’s Lattice artificial intelligence software framework, which manages propulsion, navigation, and autonomous mission execution. Officials have avoided disclosing detailed specifications, but the system is expected to relieve crewed submarines of resource-intensive ISR and SIGINT tasks and may also be used for mine-laying or other offensive roles.

The program has already produced several mission payload modules, including at least two ISR-focused packages and one strike-oriented capability. Company engineers highlight the design’s absence of a large backbone mast, which allows payload modules to be launched in multiple directions from the payload bay, increasing flexibility for integrating sensors or effectors. Anduril has stated that customer requests for more than a dozen different payload concepts are under consideration, although specific details on weapons, mines, or non-kinetic effectors remain classified. Public information also indicates that Ghost Shark can be deployed both from naval bases onshore and from warships at sea, enhancing operational options for the RAN. Program officials describe an approach of iterative testing and annual updates to maintain relevance against emerging threats, with modifications applied through modular payloads and software upgrades.

Operational trials have already included deployment to multinational exercises. In August 2024, a Ghost Shark was flown to Hawaii for Exercise RIMPAC to expand testing alongside U.S. partners, marking its first presence in the United States. It also took part in Australia’s Autonomous Warrior 2024 event, where it operated submerged in Jervis Bay with other uncrewed systems under the AUKUS framework. These demonstrations tested communication architectures such as the Multi-Domain Uncrewed Secure Integrated Communications (MUSIC) and the Common Control System, which aim to standardize control of uncrewed vehicles across allied forces. Defence leaders from Australia, the United States, and the United Kingdom have linked Ghost Shark and other platforms to broader AUKUS Pillar II activities that focus on advanced capabilities beyond nuclear submarines. Observers from Japan were present at Autonomous Warrior 2024, reflecting interest in potential trilateral or multilateral collaboration on maritime autonomy.

Strategically, the Ghost Shark is described by the Australian Defence as an asymmetric capability intended to strengthen Australia’s ability to patrol and protect its maritime approaches amid growing regional naval competition. By providing a persistent, long-range undersea presence at lower cost and with less risk to personnel than crewed submarines, it is expected to complement the Collins-class fleet undergoing life-of-type extensions and the future SSN-AUKUS submarines planned under the trilateral agreement. The government links the program not only to national defense but also to industrial development, emphasizing sovereign manufacture, supply chain resilience, and export potential to partners such as the United States, Japan, South Korea, Singapore, and European nations. While exact production numbers remain undisclosed for security reasons, government officials have used phrases such as “dozens and dozens” to describe the scale. The program’s progression from concept to full-rate production in just three years is presented by Defence as evidence of how industry-government collaboration, shared risk, and accelerated processes can yield operational capability in timelines far shorter than traditional acquisition cycles.

Written by Jérôme Brahy

Jérôme Brahy is a defense analyst and documentalist at Army Recognition. He specializes in naval modernization, aviation, drones, armored vehicles, and artillery, with a focus on strategic developments in the United States, China, Russia, Türkiye, and Belgium. His analyses go beyond the facts, providing context, identifying key actors, and explaining why defense news matters on a global scale.