Australia is closing in on a breakthrough deal to sell hundreds of locally designed combat drones, called Ghost Bats, to the German military in an agreement that could pave the way for the cutting-edge aircraft to be exported around the world.
Boeing Australia and German defence giant Rhinemetall announced on Tuesday they had entered a strategic partnership to offer the MQ-28 Ghost Bat to the German armed forces, known as the Bundesweher, for use from 2029.
The Ghost Bat is the first military combat aircraft to be designed, engineered and manufactured in Australia in over 50 years.
German Defence Minister Boris Pistorius inspected the Ghost Bat during a visit to Australia last week, saying the purchase was “under consideration” and that Germany will “make a decision as soon as possible”.
Rhinemetall chief executive Armin Papperger said in a statement: “With Boeing Defence Australia as a partner, we are laying the groundwork to optimally tailor the MQ-28 to the Bundesweher’s requirements.
“We see revenue potential for Rhinemetall in the range of hundreds of millions of euros.”
Australia has been criticised for being late to enter the drone era of warfare, but it has recently made progress with the Ghost Bat and uncrewed underwater vessels such as the Ghost Shark.
The government announced in December that it would invest another $1 billion to move the Ghost Bat from the prototype stage to become a fully operational war-fighting asset.
Boeing global president Brendan Nelson said the agreement was “not just a partnership between our companies but between two great countries, Germany and Australia, who share a similar strategy for integrating collaborative combat aircraft into their air forces”.
“Our partnership will see Germany’s industrial base leverage years of Australian innovation and investment to field and evolve MQ-28 for the Bundesweher.”
The Ghost Bat is competing against the XQ-58 Valkyrie, an experimental drone built by American firm Kratos for the US Air Force, and a third undiclosed rival for the German combat drone contract.
Turning to an Australian-developed system would mark a significant new direction for Germany, which has traditionally sourced its military aircraft from US and European partners.
The Ghost Bat, which operates without personnel on board, is packed with advanced sensors and is expected to have a range of more than 3700 kilometres.
It is designed to act as a so-called loyal wingman, teaming up for operations with traditional aircraft like fighter jets.
Germany agreed to buy more than 100 Australian-made Boxer Heavy Weapon carrier vehicles in the country’s biggest defence export deal.
But Germany was disappointed by Australia’s decision to chose Japan’s Mogami-class frigate over a rival ship made by German firm TKMS last year, and the slashing of a contract for offshore patrol vessels by German shipbuilder Lürssen.
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Matthew Knott is the foreign affairs and national security correspondent for The Sydney Morning Herald and The Age.Connect via X, Facebook or email.