A Missed Opportunity for Thales
French arms manufacturer Thales has missed out on a multi-billion-dollar contract to attach missiles to the popular Bushmaster protected mobility vehicle. This decision came just a day after the company was awarded another tender to produce 268 more of the globally acclaimed military vehicles.
The mobile missile launcher known as StrikeMaster used a pair of Naval Strike Missiles (NSM) mounted on top of the domestically produced Bushmaster. These missiles can be fired at enemy targets on land and sea, reaching a range of at least 250 kilometres. First unveiled in 2022 by defence companies Kongsberg and Thales, the StrikeMaster and its ship-killing NSMs were touted as a cost-effective option for delivering a potent “area denial” capability across Australia’s top end.
Live fire testing was being done as recently as March. However, just 24 hours after Defence Minister Richard Marles and Defence Industry Minister Pat Conroy stood at Thales’s Bendigo-based Bushmaster manufacturing facility, the Australian government announced American manufacturer Lockheed Martin as the recipient of the $2.7 billion deal to deliver its High Mobility Artillery Rocket System (HIMARS) and the Precision Strike Missile (PrSM) system.
Government Decision Sparks Questions
Yesterday, Mr Marles stumbled when asked for an update on the procurement process for the two-horse race between Thales and Kongsberg and Lockheed Martin. “We’re working through those processes, our focus today is very much, of course, the additional investment of the Bushmasters here,” he said.
Mr Conroy stated that Australia was already making missiles that could be fired from Lockheed Martin’s HIMARS system. “This decision will create even more demand for precision strike missiles within the Australian Army and deliver more opportunities for precision strike missile manufacture in Australia,” Mr Conroy said.
The government’s tender process pitted the joint Thales and Kongsberg bid against Lockheed Martin’s HIMARS system. Lockheed Martin and Kongsberg have also been contacted for comment.
The StrikeMaster was unveiled in 2022 by Thales and Kongsberg and was the favourite to win the contract as of December 2024. Thales is yet to comment on what the contract decision means for the future of the StrikeMaster.
New Investment in Bushmasters
Yesterday, the Australian government announced it would spend $1.2 billion on the new Bushmasters and upgrading defence force trucks and Hawkei vehicles. The Bushmaster has found global fame as Ukraine used about 100 of the vehicles donated by the Australian government as combat vehicles in its war against Russia.
The latest order will secure manufacturing jobs at Thales’s Bendigo-based facility for seven years and follows another order in January last year by the Australian government for 40 of the vehicles.
Innovation in Military Vehicles
The Australian Army’s research and development arm has also tested an electric prototype of the popular Bushmaster mobile-protected vehicle. In 2022, the army said the electric version could accelerate faster, generate more torque, was simpler to maintain because it had fewer mechanical moving parts, and could export power so the army could run a headquarters or a workshop from the vehicle on the battlefield.
Strategic Importance of Missile Systems
The need for missiles and rocket-mounted systems was identified in the 2023 Defence Strategic Review to defend Australia’s shores. This highlights the critical role such systems play in ensuring national security and maintaining a strong defensive posture.
As the landscape of military technology continues to evolve, the decisions made by the Australian government will shape the future of defense capabilities and industrial partnerships. The competition between international manufacturers and local producers remains intense, with significant implications for both national security and the economy.
