The Australian Government has reached a new cooperative programme with the US, focused on the Precision Strike Missile (PrSM), to augment the long-range strike capabilities of its defence force and bolster the local defence industry.
A memorandum of understanding (MoU) was signed between the two nations, laying the groundwork for development, sustainment, and subsequent enhancements of the PrSM.
The MoU grants the Australian Defence Force (ADF) access to PrSM munitions and designates PrSM as a collaborative endeavour between Australia and the US.
This agreement paves the way for Australian industry to contribute to the PrSM supply chain, including the production of components and sub-components within Australia.
In addition, the MoU includes provisions for potential future domestic production and maintenance of PrSM on Australian soil, with discussions on these options slated to begin later in the year.
Deputy Prime Minister Richard Marles and US Defence Secretary Pete Hegseth officially marked the agreement during their meeting at the Shangri-La Dialogue.
PrSM represents an advanced surface-to-surface missile system capable of delivering effects at increased ranges, thereby enhancing the lethality of defence’s integrated and targeted joint force.
The missile system is compatible with High Mobility Artillery Rocket System (HiMARS) launchers, with Australia having received its first HiMARS vehicles in March 2025, thus equipping the Australian Army with a strike capability.
The defence sector is allocating approximately A$310m ($201m) over a decade to become a fully integrated partner in the PrSM programme.
Additionally, around A$150m will be invested over five years for procuring initial quantities of this capability to establish the inaugural Long Range Fires Regiment.
Richard Marles said: “Australia’s capability and technology cooperation with the United States is a critical part of our alliance.
“The Albanese Government’s investment in the Precision Strike Missile will expand and accelerate land-based long-range strike capabilities.
“This will enable deterrence against potential threats and ensure the Australian Defence Force is equipped to meet our strategic circumstances and keep Australians safe.”
In May 2025, the Australian Government launched Mission Talon Strike, an initiative focused on fostering the development of an affordable precision loitering munition within the local industry.
