An American company has secured a major contract to build missile defence for Australia. 

Australia has awarded US defence giant Lockheed Martin a $765 million contract for the development of an advanced air and missile defence system. 

Lockheed Martin will design and supply the Joint Air Battle Management System - a key component of AIR6500, a multibillion-dollar initiative by the Australian Air Force to create an integrated network connecting sensors, radars, fighter jets, and warships to safeguard against missile threats.

The AIR6500 project stands as one of the Australian Defence Force's most technologically ambitious endeavours to date. However, its complexity, involving multiple platforms from different manufacturers, has raised questions about its feasibility and cost-effectiveness.

Earlier this year, the Defense Strategic Review called for an integrated air and missile defence system but expressed reservations about pursuing an off-the-shelf design. 

The review argued that the program was pursuing a long-term, near-perfect solution at an unaffordable cost, rather than delivering a minimum viable capability promptly.

Despite these concerns, Defense Minister Richard Marles and Defense Industry Minister Pat Conroy threw their support behind the project. 

They asserted that the air battle management system would enhance situational awareness regarding advanced air and missile threats and foster greater interoperability with international partners.

In addition to the technical advancements, Lockheed Martin's involvement is set to boost job creation. 

The project is expected to generate approximately 230 jobs in key Australian regions, including South Australia, the NSW Hunter Valley, Brisbane, and Canberra.

The Albanese Government is also accelerating the ADF’s Medium-Range Ground-Based Air Defence capability, which will form part of a layered, integrated air missile defence capability. Options are currently being developed with several companies for Government consideration.