Australia Confirms $1.3B U.S. Missile Deal Amid Defence Spending Debate

Australia has finalized a A$2 billion (US$1.3 billion) purchase of advanced supersonic missiles from the United States, reinforcing its defence strategy amid growing regional tensions. Defence Industry Minister Pat Conroy confirmed on Thursday the acquisition of AIM-120C-8 and AIM-120D-3 missiles from Raytheon Technologies (NYSE:RTX), which will equip Australia’s F/A-18 Super Hornet and F-35 fighter jets, as well as a new strike brigade capable of targeting threats up to 500 kilometers away.

Despite the major investment, Prime Minister Anthony Albanese has pushed back against U.S. pressure to increase Australia’s defence spending to 3.5% of GDP. Current projections estimate spending will reach 2.3% by 2033. Foreign Minister Penny Wong, after meeting with U.S. Secretary of State Marco Rubio in Washington, emphasized Australia’s "capability approach" to defence and noted the country is already undergoing its largest peacetime military expansion.

Albanese had planned to meet President Donald Trump during the G7 summit, but the meeting was cancelled due to Trump’s early departure following escalating Middle East tensions. Officials are working to reschedule the meeting.

The missile sale, involving 400 units under the U.S. Foreign Military Sales program, was notified to Congress in April. An additional $2 billion in proposed sales of electronic warfare systems for Australia’s F/A-18 and EA-18 Growler jets was reported in June.

Last year, Albanese pledged A$74 billion (US$47 billion) to bolster missile capabilities, including A$21 billion to launch a domestic Guided Weapons and Explosive Ordnance Enterprise. The spending is part of a broader effort to counter China’s expanding military influence and strengthen Australia’s strategic deterrence in the Indo-Pacific region.