The government announced it has chosen US defence giant Lockheed Martin's high mobility artillery rocket system (HIMARS) to provide the Australian army with long-range strike capability.
The precision strike missile, being co-developed between Australia and the US, will have a range of more than 1000km in the next generation design.
It beat Kongsberg Defence Australia and Thales Australia's StrikeMaster which has a range of up to 300km.
The US rocket launchers were used during Exercise Talisman Sabre 25, firing a precision strike missile two years ahead of schedule.
The United States is using the rocket launch systems and the missiles in the conflict in the Middle East.
Security analysts have raised concerns the US will not have enough supply of stock to sell to Australia due to the war.
A $2.3 billion commitment over the decade will deliver the 48 new rocket launch systems, a second long‑range fires regiment at the Edinburgh Defence Precinct in South Australia, and to equip that regiment with precision strike missiles.
The 2026 National Defence Strategy, released earlier this month, identified the Australian Defence Force needs greater long-range strike capability to defend the nation.
Defence Minister Richard Marles said the capability delivered on the strategy's direction for the Australian military.
"This is a decisive investment in Australia's long‑range strike capability that will bolster our defence force and help keep Australians safe," he said.
"This is another significant milestone as the Albanese government continues to invest in an integrated, focused force that meets our strategic circumstances."
Defence Industry Minister Pat Conroy said the move will create more opportunities for precision strike missiles to be manufactured in Australia.
"The Albanese government is investing up to $37 billion over the next decade on targeting and long-range strike capabilities for the ADF," he said.
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