French arms manufacturer Thales has failed to secure a multi-billion-dollar contract to integrate missiles into the Bushmaster protected mobility vehicle. This outcome comes just one day after the company was awarded a separate tender to produce 268 additional units of the acclaimed military vehicle.
Lockheed Martin Secures Major Missile Deal
The Australian government has announced American manufacturer Lockheed Martin as the recipient of a $2.7 billion deal. The contract will provide the High Mobility Artillery Rocket System (HIMARS) and the Precision Strike Missile (PrSM) system.
Defence Industry Minister Pat Conroy stated that Australia is already producing missiles compatible with the HIMARS system. He noted that the 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.”
The StrikeMaster and Area Denial
The bid that lost out was for the StrikeMaster, a mobile missile launcher unveiled in 2022 by Thales and Kongsberg. The system features a pair of Naval Strike Missiles (NSM) mounted on a domestically produced Bushmaster, capable of hitting land and sea targets at distances of at least 250 kilometres.
Touted as a cost-effective method for establishing “area denial” capabilities across Australia’s top end, the StrikeMaster was considered the favorite to win the contract as of December 2024. Live fire testing of the system was conducted as recently as March.
Sustaining Local Production in Bendigo
Despite the missile contract loss, Thales continues to observe significant investment in its vehicle production. The government recently announced a $1.2 billion spend on fresh Bushmasters and the upgrading of Hawkei vehicles and defence force trucks.
In addition to the 268 vehicles for Australia, Thales will build approximately 30 more for the Netherlands. These orders are expected to secure manufacturing jobs at the company’s Bendigo-based facility for the next seven years.
Strategic Goals and Future Innovations
The requirement for rocket-mounted systems and missiles was first identified in the 2023 Defence Strategic Review as a necessity for defending Australia’s shores. Defence Minister Richard Marles recently emphasized that the government’s current focus remains on the “additional investment of the Bushmasters.”
Looking ahead, the Australian Army’s research and development arm has explored an electric prototype of the Bushmaster. In 2022, the army indicated that an electric version could offer faster acceleration, more torque, and simplified maintenance due to fewer moving parts.
Such a prototype could potentially export power, allowing the army to operate a workshop or headquarters directly from the vehicle on the battlefield. The future of the StrikeMaster remains uncertain, as Thales has not yet commented on the implications of the contract decision.
Frequently Asked Questions
What is the StrikeMaster system?
The StrikeMaster is a mobile missile launcher developed by Thales and Kongsberg. It consists of a domestically produced Bushmaster vehicle fitted with two Naval Strike Missiles (NSM) capable of striking land and sea targets up to 250 kilometres away.
How much is the contract awarded to Lockheed Martin?
The Australian government awarded Lockheed Martin a $2.7 billion deal to deliver the High Mobility Artillery Rocket System (HIMARS) and the Precision Strike Missile (PrSM) system.
What are the benefits of the electric Bushmaster prototype?
According to the army in 2022, the electric version could provide faster acceleration, more torque, and easier maintenance. It also possesses the ability to export power to run battlefield workshops or headquarters.
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