While U.S. stalls, Australia and Anduril move to put XL undersea vehicle into service | TechCrunch

With Anduril’s help, Australia completed what the U.S. Navy worked hard to achieve: transitioning an ultra-large subsea drone from whiteboard to contract in just three years.

Anduril announced on Tuesday that its XL unclothed submarine vehicle (Xluuv) “Ghost Shark” will begin operations in Australian waters next year, and the fleet will begin operating in Australian waters under a huge Australian $1.7 billion ($1.1 billion) contract.

The five-year reward structure is the holy grail of the beginning of defense; it is a record plan that essentially repeats revenue by becoming an order item in the country’s defense budget. The platform’s contract provides remote, covert surveillance and strike operations covering delivery, maintenance and ongoing development.

It also reflects the political urgency of Australia’s propaganda of new capabilities in the Indo-Pacific region to prevent China from growing threats.

“At the end of the day, it depends on having serious imagination, having imagination, and having to imagine a new idea and achieving that. That’s what the Australian government does,” Andrew’s President Chris Brose said in an interview. “There are fewer people in Australia, much less money, and there are fewer many of the bureaucratic challenges facing our Pentagon, and they have been able to achieve that.”

The contrast with the United States is very vivid.

The only Xluuv in development is Boeing’s Orca, which is behind the plan. By comparison, Anduril and Australia jointly developed and co-funded Ghost Shark in 2022, with $50 million per shark. The first prototype was delivered in April 2024, twelve months ahead of schedule and has begun production.

The plan proposes a new model of defense procurement. Anduril has included some of its own capital in Derisk Australia’s otherwise fast acquisition schedule.

Anduril did not stop with Australia.

Shane Arnott, a middle and senior vice president of maritime, said ghost sharks can quickly “preach in the country”, meaning the government can insert its own payload module as needed. Anduril has already conducted a U.S. payload on California Coast that stands a 150,000-square-foot factory in Rhode Island, and produces ghost sharks in the United States if contracts come true.

“The United States has an Xluuv program that has been struggling for most of the decade,” Bros said. “It spends money on this program than the Australian government and Andrew Lille have spent on developing ghost sharks and lagging behind. We have spent more time in the water, on and under the water. We have the ability to span more tasks. We are ready to go. We are ready to deliver at a lower price, and we will do that at a lower price.”

For Australia, the urgency is obvious. It is the largest island country with a small population and close to its western rivals. Mainly China, which quickly expanded its navy and brought its ships deep into the Pacific Ocean, including provocative exercises on the Australian coast. This stress makes the Ghost Shark a fascinating solution.