SYDNEY: Australia is set to significantly increase its investment in drone technology, allocating up to Au$5 billion ($3.6 billion) as it adapts to changing patterns of modern warfare, Defence Minister Richard Marles said.
The move follows lessons drawn from conflicts in the Middle East and Ukraine, where the growing use of low-cost, mass-produced drones has reshaped battlefield strategies.
Australia has traditionally prioritised large-scale defence assets such as autonomous submarines and advanced fighter aircraft, including projects known as Ghost Shark and Ghost Bat. However, recent developments have prompted a shift towards expanding capabilities in smaller drones and counter-drone systems.
“We look at what’s happening in the Middle East right now — you need counter-drone technology as well,” Marles said in an interview.
He revealed that Australia plans to invest between Au$12 billion and Au$15 billion over the next decade in autonomous defence technologies, ahead of an updated national defence strategy expected later this week.
Vast geography and limited population
“Clearly, autonomous systems now are really central to how contest happens, how war happens,” he said.
Marles noted that Australia’s vast geography and limited population require a broad range of defence capabilities, including scalable drone systems.
“What you get at the smaller end is mass — you know, lots of units — and that’s what we are seeing play out in Ukraine,” he added.
As a close ally of the United States, Australia has been reshaping its military strategy in recent years, focusing on enhancing missile strike capabilities and strengthening deterrence in its northern regions, particularly in light of China’s expanding naval presence.
Under the AUKUS partnership with the US and the United Kingdom, Australia is also set to acquire nuclear-powered submarine technology in the coming decade.
Meanwhile, Germany is reportedly considering the Australian-developed Ghost Bat system as part of its own military modernisation efforts.



