While U.S. stalls, Australia and Anduril move to put XL undersea vehicle into service

In a significant development, Australia has successfully partnered with Anduril to transition the XL uncrewed undersea vehicle (XLUUV), known as the 'Ghost Shark,' from concept to contract in just three years. Announced on Tuesday, this initiative comes under a substantial AUS$1.7 billion (approximately US$1.1 billion) agreement, marking a pivotal moment for Australia’s defense capabilities as the fleet is slated to commence operations in Australian waters next year. This five-year contract is a major win for Anduril, as it secures a stable stream of revenue by becoming a permanent entry in Australia’s defense budget. The agreement encompasses the delivery, maintenance, and ongoing development of the Ghost Shark, which is designed for long-range, stealthy surveillance and strike missions. The urgency behind this move highlights Australia’s need to bolster its defenses in the Indo-Pacific region, particularly in response to growing threats from China. Anduril President Chris Brose emphasized the importance of innovation and determination in achieving this milestone. "At the end of the day, this comes down to having seriousness, having imagination, and having will to conceive a new idea and bring it to fruition. And that’s what the Australian government has done," Brose stated during an interview. He noted that despite having fewer resources and facing similar bureaucratic hurdles as the U.S. Pentagon, Australia has managed to make significant strides. In stark contrast, the United States is struggling with its own XLUUV program, particularly Boeing’s Orca, which has faced extensive delays. The Ghost Shark project, developed collaboratively by Anduril and Australia, saw its first prototype delivered in April 2024—one year ahead of schedule—with production already underway. Anduril's approach represents a new paradigm in defense procurement. By investing its own capital to mitigate risks, the company has enabled a faster acquisition process for Australia. The versatility of the Ghost Shark is another advantage, as it can be quickly adapted for various missions by integrating different payload modules. Furthermore, Anduril has established a 150,000-square-foot factory in Rhode Island, ready to manufacture Ghost Sharks for the U.S. market if contracts are awarded. Brose pointed out the irony in the U.S. spending significantly more on its XLUUV program, yet falling behind Australia in terms of development and readiness. With its unique geographical position and the pressing need to counter China's expanding naval presence, Australia’s deployment of the Ghost Shark is not just a technological advancement; it is a strategic necessity. The program exemplifies how innovation in defense can arise from collaboration and a proactive approach to national security.