A Ghost Shark autonomous undersea vehicle stands inside Anduril Australia’s new manufacturing facility during its opening ceremony, following the Royal Australian Navy's award of a A$1.7 billion contract to Anduril Australia in September, in Sydney, Australia, October 31, 2025. REUTERS/Hollie Adams

SYDNEY (Reuters) -U.S. defence firm Anduril Industries on Friday opened a new manufacturing facility in Sydney to produce undersea drones known as “Ghost Sharks” and deliver on its A$1.7 billion ($1.1 billion) supply contract with Australia’s navy.

Australia in September awarded Anduril the contract to co-develop a fleet of Ghost Shark vessels over the next five years to complement the Royal Australian Navy's surface fleet.

Dozens of the drones will be made in Sydney and could then be exported to the U.S. and other nations, subject to Australian government approval.

Anduril said the first vehicle had been completed ahead of schedule and was ready for in-water testing before a planned delivery in January.

The 7,400 square metre (8,850 square yards) plant will ramp up to full-scale manufacturing in 2026 and is expected to create about 150 jobs, it said.

More than 40 local businesses will also supply parts, components and materials for the programme.

"Today marks a defining moment in our mission to bring sovereign undersea capability to Australia,” Anduril Australia CEO David Goodrich said in a statement.

“We look forward to supporting Australia and its allies by producing Ghost Sharks right here in Sydney."

Defence Industry Minister Pat Conroy said the project would strengthen Australia’s domestic manufacturing capabilities and secure well-paid, high-skilled jobs for the country.

($1 = 1.5389 Australian dollars)

(Reporting by Christine Chen in Sydney; Editing by Kate Mayberry)