Australia will buy dozens of high-tech, locally made submarines drones under a $1.7 billion plan to boost the military’s autonomous capabilities and compete with China’s rapid military build-up.

The Albanese government announced on Wednesday that it had awarded United States defence firm Anduril a contract to develop and manufacture a fleet of “Ghost Shark” extra-large underwater drones for the navy, with the first vessel scheduled to enter service in January.

Ghost Shark vessels made in Australia could then be exported overseas to the US and other nations in a significant win for the Australian defence industry.

The undersea drones, which do not carry any crew, can be used to strike enemy targets such as submarines and ships while also conducting surveillance and reconnaissance mission

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