The Australian Government has awarded Lockheed Martin Australia a AUD$1.32 billion contract to develop and sustain AIR6500, the nation’s sovereign joint air battle management system, according to Lockheed Martin Australia.
Strengthening a Unified Battlespace View
AIR6500 merges Australia’s air and missile defence capabilities into a single operating picture. The system tracks and counters threats across multiple ranges and domains. Under this new phase, called Tranche 2B, Lockheed Martin will work alongside the Department of Defence and local industry partners.
Engineers will upgrade AIR6500’s core architecture with improved command-and-control tools, expanded communications, and stronger cybersecurity. These enhancements aim to keep sensor and command networks resilient. The system will also link more closely with the Australian Defence Force’s targeting operations and allied forces.
Growing a Sovereign Workforce
Lockheed Martin Australia currently employs 360 engineers on the programme, forming the country’s largest integrated air and missile defence industrial base. The company plans to expand that team past 400 within eighteen months. Australian industry partners will deliver a significant portion of the six-year Tranche 2B effort.
Separately, Lockheed Martin is investing $85.9 million in a new national air and missile defence facility to bolster system resilience.
Building on Recent Milestones
Over the past two years, the company has produced a prototype battle management system, two tactical operations centres, and completed an integration lab in Adelaide, while training Royal Australian Air Force personnel.
Stephanie Hill, Lockheed Martin’s president of Rotary and Mission Systems, said the programme “safeguards the Indo-Pacific region” by strengthening allied interoperability. The contract underscores growing investment in sovereign defence manufacturing across the Indo-Pacific, as regional security tensions continue to shape procurement priorities.
