Defence awards contracts to three Australian companies in AUKUS Pillar II Innovation Challenge

Defence has awarded $6.2 million to three Australian-based companies as part of the 2025 AUKUS Maritime Innovation Challenge. The Challenge sought innovative technologies to support undersea communications and control of autonomous systems.

BAE Systems Australia, L3Harris Integrated Mission Systems Australia Pty Ltd and Mission Systems Pty Ltd have received contracts with the Advanced Strategic Capabilities Accelerator (ASCA), as part of the challenge. Their technologies will be demonstrated by the end of 2026.

Communicating efficiently under water is extraordinarily difficult as water doesn’t transmit most radio waves. But good communications are fundamental to an autonomous system’s ability to operate safely, efficiently, and effectively to protect critical undersea infrastructure and secure international waters.

“Through the 2025 AUKUS Maritime Innovation Challenge, ASCA is collaborating with local industry and AUKUS partners to rapidly develop interoperable systems that translate innovation into real-world maritime capability,” said MAJGEN Hugh Meggitt, Head of ASCA. “This work will strengthen the effectiveness, resilience, and reach of uncrewed undersea operations across the Indo-Pacific.”

The key enabling capabilities being developed through this challenge will support interoperability between AUKUS partners and their uncrewed undersea vehicles as part of the AUKUS Pillar II Signature Project. Australia has two undersea vehicles that it is prepared to talk about: the Ghost Shark Extra Large Autonomous Undersea Vehicle (XL-AUV) and the Speartooth Large Uncrewed Undersea Vehicle (LUUV), made by Anduril Australia and C2 Robotics, respectively.

The contracts ASCA has awarded will support the development of communication capabilities between Undersea Vehicles (UVs) and command and control battle management systems, as well as navigational data for UVs.

ASCA leads the Australian component of the challenge, working with the United Kingdom Defence Innovation Organisation (UKDI) and the United States Defense Innovation Unit (US DIU).