while us stalls, australia and anduril move to put xl undersea vehicle into service

Australia's Rapid Deployment of Underwater Drones

Australia, leveraging assistance from Anduril, has successfully transitioned an extra-large uncrewed undersea vehicle from initial concept to a signed contract within a remarkably short timeframe of three years – a feat the U.S. Navy has found challenging.

Anduril's "Ghost Shark" Fleet

Anduril revealed on Tuesday that a fleet of its XLUUV (extra-large uncrewed undersea vehicle), known as “Ghost Shark,” is scheduled to commence operations in Australian waters starting next year. This deployment is supported by a substantial AUS$1.7 billion (US$1.1 billion) contract.

A Significant Contract Award

The five-year contract represents a key achievement for defense startups. It establishes a program of record, effectively guaranteeing recurring revenue by integrating into the nation’s defense budget. The agreement encompasses the delivery of the platform, ongoing maintenance, and continued development efforts.

Addressing Geopolitical Concerns

This initiative also underscores the pressing political need within Australia to deploy advanced capabilities in the Indo-Pacific region. This is in response to the increasing security challenges posed by China’s growing influence.

Australian Innovation and Determination

“Ultimately, success hinges on dedication, ingenuity, and the resolve to transform a novel concept into a tangible reality,” stated Anduril President Chris Brose during an interview. “The Australian government has demonstrated these qualities.”

He further noted, “Despite having a smaller population, fewer financial resources, and similar bureaucratic hurdles to the U.S. Pentagon, Australia has achieved this milestone.”

A Contrast with U.S. Programs

The situation differs significantly in the United States.

Boeing’s Orca, the sole XLUUV currently in development, is experiencing substantial delays. In contrast, Anduril and Australia collaboratively developed and co-funded Ghost Shark in 2022, each contributing $50 million. The initial prototype was delivered in April 2024, ahead of schedule by twelve months, and production is already underway.

A New Procurement Model

This program introduces an innovative approach to defense procurement. Anduril invested its own capital to mitigate risks associated with Australia’s accelerated acquisition schedule.

Expanding Beyond Australia

Anduril’s ambitions extend beyond Australia.

Shane Arnott, SVP Of Maritime, explained that Ghost Shark is designed for rapid “missionization in country,” allowing governments to integrate their own payload modules as required. A U.S. payload is currently undergoing testing off the California coast, and a 150,000-square-foot manufacturing facility has been established in Rhode Island to facilitate Ghost Shark production within the U.S. should a contract be secured.

Competitive Advantages

“The United States has been grappling with an XLUUV program for nearly a decade,” Brose commented. “This program has incurred significantly higher costs than the Australian Government and Anduril’s investment in the Ghost Shark capability, yet it remains further behind in development.”

He continued, “We possess greater experience operating in, on, and under the water, a broader mission capability, and are more prepared for large-scale deployment, all at a reduced cost.”

Strategic Importance for Australia

Australia faces unique strategic challenges. As a large island nation with a relatively small population, it is geographically close to potential adversaries. China’s rapid naval expansion and increased activity in the Pacific, including provocative exercises near Australian shores, have heightened these concerns, making Ghost Shark a particularly attractive solution.