Australia has made a significant stride towards strategic autonomy with its AUD 3.5 billion investment in sovereign defence capabilities. This announcement, which prioritises local manufacturing and research & development, is not an isolated incident but rather an acceleration of a trend seen over the past 30 days. Australia’s neighbour, Japan, has been another notable player in this trend, with mentions of its defence policies doubling in the last month. Both nations seem to be taking steps towards reducing their dependence on foreign suppliers, particularly those from major powers like the U.S.
However, today’s top story, the U.S. Navy’s acceleration of Tomahawk production, reveals a countervailing trend: great power competition is driving increased demand for military hardware. The modification of General Dynamics’ SLAM-ER contract reflects an urgent need to meet inventory demands, with ‘current international conflict’ cited as the primary reason. This aligns with a 30-day trend that has seen missile defence systems and cruise missiles mentioned six times each, suggesting a focus on strategic deterrence and regional security.
What Else Moved:
Sweden inked a contract with France for four FDI frigates, marking another example of European defence cooperation amidst heightened tensions. Davie Shipbuilding won a $11.3 billion Canadian Coast Guard icebreaker contract, demonstrating the ongoing demand for domestic naval construction capabilities.
FORWARD LOOK: We’ll be watching for more announcements from other nations pursuing strategic autonomy, as well as further indications of great power competition driving military hardware procurement.