The latest collaboration between the United States and Australia isn’t just about minerals, it’s about machines beneath the sea. As part of a broader $3 billion critical minerals deal, Canberra has confirmed a separate $1.2 billion agreement to purchase a fleet of autonomous underwater vehicles (AUVs) from U.S. defense startup Anduril, strengthening military and industrial cooperation between the two allies.
The announcements, made during President Donald Trump and Prime Minister Anthony Albanese’s bilateral talks on Monday, mark a turning point in how both nations view defense innovation and supply chain security. While the $3 billion critical minerals deal aims to secure access to key materials such as gallium and rare earths, the Anduril contract highlights Australia’s growing reliance on artificial intelligence, robotics, and unmanned systems for maritime defense.
The centerpiece of this new defense collaboration is Anduril’s Ghost Shark, an AI-powered autonomous underwater vehicle designed for long-endurance missions across deep and coastal waters. The Ghost Shark can perform surveillance, reconnaissance, and payload delivery without human crews, operating for extended periods under the ocean’s surface. Its modular design allows it to carry sensors, sonar, and even offensive capabilities depending on mission needs.
For Australia, the investment in AUVs reflects a shift toward advanced undersea warfare technologies as regional tensions rise in the Indo-Pacific. The Royal Australian Navy has spent the past two years working closely with Anduril to co-develop the Ghost Shark platform under a joint initiative announced in 2023. That original $1.12 billion program has now expanded into a $1.2 billion purchase, signaling strong confidence in the system’s performance and potential scale.
The new deal aligns with Australia’s broader defense modernization goals outlined under its Defence Strategic Review. The country is rapidly investing in autonomous systems, submarine capabilities, and long-range deterrence tools to safeguard its maritime borders and support allied operations in contested waters. The Ghost Shark AUVs, capable of operating silently and gathering critical intelligence, are central to that vision.
Anduril Industries, founded by Palmer Luckey in 2017, has quickly become one of the most disruptive defense technology companies in the world. Known for its bold approach to military innovation, Anduril merges artificial intelligence with defense hardware to build systems that operate independently and learn in real time. Its portfolio spans aerial drones, ground surveillance towers, and maritime platforms, all powered by the company’s proprietary Lattice OS software, which allows multiple autonomous systems to coordinate as a team.
The Ghost Shark is Anduril’s most ambitious underwater platform to date. Co-developed with the Australian Navy and the Defence Science and Technology Group (DSTG), the vehicle combines stealth with scalability. It can be launched from small ports or ships and can patrol thousands of miles autonomously, feeding live intelligence to operators onshore or in the air.
For both nations, this AUV program goes beyond hardware procurement. It represents the fusion of defense technology development, sovereign capability building, and strategic deterrence. By investing heavily in underwater autonomy, Australia is building a domestic industrial base for advanced maritime systems, while the U.S. gains a forward, deployed ally capable of co-producing and testing defense innovations across the Pacific.
The timing of this defense announcement, paired with the critical minerals deal, is not coincidental. The $3 billion minerals pact includes U.S. Department of Defense investment in a new gallium refinery in Western Australia capable of producing 100 tons per year. Gallium is essential for advanced semiconductors, sensors, and radar systems used in platforms like the Ghost Shark. Together, these two initiatives form a closed strategic loop: secure the materials, build the technology, and deploy it with allies.
By linking minerals and defense under one strategic umbrella, Washington and Canberra are sending a clear message: technological sovereignty now depends on both physical resources and digital intelligence. Australia’s gallium production will feed directly into industries that power both civilian and defense electronics. Meanwhile, the Anduril partnership ensures those technologies are deployed at the cutting edge of autonomous warfare.
The White House did not specify whether the AUV purchase represents new funding or an extension of the existing Ghost Shark program, but officials confirmed it falls within the broader defense cooperation framework between the two countries. The expansion underscores how private defense startups like Anduril are increasingly shaping national security policy, taking on roles once reserved for large contractors.
Analysts say the deal is one of the clearest examples of the U.S. strategy to strengthen alliances through technology sharing and joint industrial development. Unlike traditional arms deals, which focus on finished products, the Anduril agreement integrates R&D, local manufacturing, and software collaboration between both nations’ defense ecosystems. That approach ensures Australian engineers and suppliers remain deeply involved in the Ghost Shark’s ongoing development.
The scale of the AUV initiative also signals that Australia is preparing for a future in which autonomous systems act as force multipliers. With naval budgets under pressure and regional threats evolving, unmanned systems like the Ghost Shark offer lower-cost, high-endurance alternatives to conventional crewed submarines. They can gather intelligence, map undersea terrain, or carry payloads in areas too risky for human crews.
As part of the long-term vision, Anduril has hinted at integrating future AUVs into networked fleets, swarming formations that can communicate and cooperate autonomously, sharing data across air, sea, and space domains. Such capabilities would dramatically expand the surveillance and deterrence reach of allied forces across the Indo-Pacific.
Australia’s dual announcements, a critical minerals partnership worth $3 billion and a defense procurement valued at $1.2 billion, reflect a new era of integrated industrial strategy. It’s not just about buying equipment or mining metals; it’s about building resilience across the entire ecosystem that sustains both economies and militaries.
By securing the minerals needed for advanced manufacturing and investing in the technologies that protect those supply chains, the two allies are tying their industrial futures together. This interdependence ensures that when new threats emerge, whether economic or military, both nations can respond with shared infrastructure, shared intelligence, and shared innovation.
The U.S.-Australia partnership now spans the full spectrum of modern defense, from the seabed to space. And with companies like Anduril at the center, it also marks the rise of a new defense-industrial model driven by software, autonomy, and collaboration. In a decade where oceans are once again becoming contested frontiers, the Ghost Shark may prove as strategically valuable as the minerals buried beneath the earth.
