Australia scraps $5 billion dollar military satellite project

The project to deliver Australia’s first sovereign-controlled satellite communication system was awarded to Lockheed Martin in 2023. The government says it will prioritize a multi-orbit capability.

featured-image

Australia has scrapped a USD 5 billion dollar military satellite project with US defence contractor Lockheed Martin. The military will now shift its focus to a multi-orbit system, the Department of Defence said. The project was awarded to Lockheed Martin last year after a competitive tender process that included big companies like Airbus and Northrop Grumman.

The Geostationary Earth Orbit (GEO) satellite communications system would have delivered the country’s first sovereign-controlled satellite communication system over the Indo-Pacific ocean regions, according to Reuters . Defence industry sources quoted by The Australian newspaper suggested that insufficient funding was allocated to start the program, despite its strategic importance. It added that the government would instead prioritize a multi-orbit capability to increase resilience for the armed forces.



In a radio interview with the Australian Broadcasting Corporation , Prime Minister Anthony Albanese said while the country’s defense budget was increasing, his government was prioritizing its purchases. The project had aimed to launch several large military-grade satellites and also involve ground stations, new satellite communications operations centres, and a central management system, according to a report in The Conversation . The Space Industry Association of Australia (SIAA) expressed “profound disappointment” with the government’s decision.

.