Australia signs agreement with Norway, invests $850M in local missile production

May 14, 2026, by Fatima Bahtić

The Australian government has signed a new missile cooperation agreement with Norway as Canberra advances plans to invest up to $850 million in domestic production of naval strike missiles and joint strike missiles.

As informed, the countries signed a Memorandum of Understanding (MoU) to further support the acquisition and domestic manufacturing of missiles in Australia.

The multilateral arrangement is expected to enhance information sharing and collaboration between Australia, Norway and ten other countries that use the missiles, which are developed by Norwegian defense company Kongsberg.

The arrangement supports Australia in becoming a regional missile production hub.

Australia joins forces with Kongsberg to establish first missile factory

Equipment & technology

The government is investing up to $850 million to enable Australia to locally manufacture and maintain the naval strike missile, joint strike missile, and priority missile components.

This includes the construction of a new missile factory in Newcastle, which will be able to produce missiles for the Australian Defence Force and partner nations from 2027.

These initiatives form part of Australia’s investment of up to $36 billion over the decade to accelerate the acquisition and manufacture of longer-range munitions in Australia, in line with the 2026 Integrated Investment Program.

“The Albanese Government is investing up to $36 billion over the next decade to make missiles in Australia and uplift our weapons stocks, making our nation more self-reliant and resilient,” Minister for Defence Industry Pat Conroy commented.

“This arrangement will support local jobs and a defence future made in Australia by enabling domestic manufacturing through cooperation with international partners.”