Australia Commits $10 Billion into Drone Defence Systems Ahead of Olympics

Australia Commits $10 Billion into Drone Defence Systems Ahead of Olympics
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Australia will invest $10 billion in drones, counter-drone systems and autonomous technology under its Defence’s Integrated Investment Program, revealed Minister Pat Conroy in Brisbane on Aug. 19.

He said the technology would be ready for deployment by the time the city hosts the 2032 Brisbane Olympic Games.

Through Project Land 156, the Australian Defence Force will roll out a “continuous modernisation model” to fast-track and regularly upgrade drone defences.

“This is a rolling effort,” Conroy told the Queensland Media Club.

“The investment doesn’t stop, the technology cycle doesn’t stop, and industry has the security of policy and funding to keep developing.”

He added that Australia had “three priceless assets” in the uncrewed race: defence scientists, research partners, and the Queensland Defence Science Alliance working on the next generation of loitering munitions.

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Participants practice flying a drone, in this case to locate colleagues who were hiding and pretending to be enemy snipers, during a combat training day hosted by a local paramilitary civil formation called TSEL, in Lviv region, Ukraine, on Feb. 22, 2023. Sean Gallup/Getty Images
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Lessons From Ukraine

Conroy pointed to Ukraine as a live case study, noting that drone warfare has become a rapidly evolving contest.

“When it comes to drones, the cycle of adaptation and counter-adaptation is around three to six months,” he said.

According to an Atlantic Council report, Ukraine has expanded drone use well beyond strikes and surveillance. Drones now deliver supplies, assist with casualty evacuations, and even guide Russian troops to surrender without direct combat.

They have also been used to document alleged war crimes, including civilian attacks and the execution of prisoners of war, providing evidence that could one day be used in international courts.

Ukraine’s drones have also mapped battlefields in real time, giving commanders critical intelligence to sharpen operations.

At sea, they have transformed naval warfare by sinking or damaging about a third of Russia’s Black Sea Fleet since 2022.

Ukraine has recently claimed to have brought down two Russian jets over the Black Sea with naval drones.

Drone Breakthrough

Conroy also highlighted the MQ-28A Ghost Bat, calling it a milestone for Australia’s defence industry. The Ghost Bat is the first military aircraft designed, engineered, and manufactured in Australia in more than half a century.

The aircraft teams drones with crewed planes so they can operate as a coordinated unit.

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Australia's Pacific Minister Pat Conroy attends a climate breakfast in Kigali, Rwanda on June 22, 2022. Luke Dray/Getty Images
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“The technology is in the early stages of adoption by Air Forces around the world,” Conroy said.

As of July 25, the Ghost Bat had logged 20,000 hours of digital twin testing, 119 live sorties, and 146 flight hours.

Canberra has already approved three next-generation Ghost Bats with enhanced designs. Around 70 percent of the program is being delivered by Australian industry, with more than 200 local firms involved.

Queensland companies such as Ferra, Microelectronic Technologies, B&R, and Coastal Aviation play a central role.

“If we take it to full production, it will be built right here in Queensland,” Conroy said, adding that Boeing Defence Australia is working closely with Canberra to secure export markets.

Queensland’s Defence Footprint

Defence investment is already paying dividends in Queensland. The most recent ABS data shows the state’s defence industry contributes $1.2 billion annually to the national economy, Conroy said.

Local companies are also carving out global reputations. Gold Coast-based GaardTech, founded by veterans, produces robotic systems for training, deception and combat.

It has already signed export deals with the British Army, German Army, Singapore Air Force and U.S. Marines.

“Exports are essential to making the Australian defence industrial base more productive, capable and resilient,” Conroy said.

Defence Budget Debate

Despite calls to go further, the government is sticking with its current budget plan.

Conroy argued that expanding defence exports and leveraging global supply chains will deliver scale more effectively than simply lifting funding.

Last month after the NATO summit, Deputy Prime Minister and Defence Minister Richard Marles reiterated that Canberra would hold its course.

Under the 2024–25 federal budget, defence spending is set to rise from 2 percent of GDP to 2.3 percent by 2033–34.

That remains well short of U.S. expectations. In June, U.S. Defence Secretary Pete Hegseth urged Australia to lift spending to 3.5 percent of GDP “as soon as possible” to meet Pacific security challenges.

Marles defended the government’s path, saying it represented the largest increase in Australia’s peacetime history.

“We’ve gone through our own process of assessing the strategic landscape, the threats that exist there, and the kind of defence force we need to build in order to meet those threats, to meet the strategic moment, and then to resource that,” he said.

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