Australia has committed to investing 1.2 billion Australian dollars ($855 million) to enhance the Australian Defence Forces’ ground vehicle fleet.
The investment covers the purchase of an additional 268 next-generation Bushmaster Protected Mobility Vehicles (PMVs) from Thales, valued at 750 million Australian dollars ($538 million).
It also includes 450 million Australian dollars ($323 million) worth of upgrades to Thales’ Hawkei PMVs and Rheinmetall’s medium/heavy truck capability in service.
Thales Australia is set to build the Bushmasters at its Bendigo facility in Victoria, which has already manufactured over 1,300 Bushmaster PMVs. Meanwhile, the Hawkei vehicles will undergo modernization at Thales’ Brisbane facility.
Bushmaster production will begin in 2027, with the vehicles featuring several enhancements, including protection and mobility, as well as the ability to integrate more powerful weapons, a wide range of sensors, and advanced digital systems.
The Bushmaster order is intended to replenish the Australian Defence Forces’ inventory, with over 100 units donated to Ukraine, in addition to an undisclosed number to be exported to the Netherlands.
“This major contract for the delivery of hundreds of combat-proven vehicles demonstrates how government and industry can work together to deliver what this country needs,” said Hervé Dammann, Thales’ Executive VP for Land and Air Systems.
Strengthening Defense
In early April, the Australian government announced that it would raise defense spending to 3 percent of its GDP by 2033, higher than its previous forecast of 2.3 percent.
Canberra has been boosting its defense capabilities through various projects, including preparations to operate nuclear submarines under the AUKUS partnership with the US and UK, and committing up to 15 billion Australian dollars ($10.7 billion) to acquire autonomous systems.
It has also been strengthening ties with regional allies, including Japan and Indonesia.
