Prime Minister Anthony Albanese has confirmed an export deal worth $1 billion for Australian-made Boxer Combat Reconnaissance Vehicles (CRVs) to be exported to Germany.
PM Albanese is meeting German Chancellor Olaf Sholz in Berlin today. The deal was first revealed in the AFR as Australia’s largest-ever defence export contract, and a major win for manufacturer Rheinmetall Defence Australia.
“This is one of the biggest defence sales in Australia’s history – and is worth over $1 billion to the Australian economy in the production and supply of these vehicles,” PM Albanese said.
“The agreement will boost Australia’s sovereign defence industry, secure local jobs and contribute to Australia’s economic growth.”
The deal for 100 Boxer vehicles could be worth up to $3 billion, with the $1 billion announced as a ‘down payment’, though the total value is not confirmed. The vehicles would be built at Rheinmetall’s Military Vehicle Centre of Excellence in Queensland.
"This announcement is a huge win for advanced manufacturing and jobs in Queensland,” Queensland Premier Annastacia Palaszczuk said. "It means long-term good secure jobs for Queenslanders.
"Queensland manufactures everything from trucks to trains providing good, high-paying jobs and careers particularly in regional Queensland. This is yet another tick for the government's determination to partner with companies like Rheinmetall and make more in Queensland."
Both Germany and Australia have come under criticism for low or delayed levels of military support to Ukraine as it continues on a grinding counteroffensive against entrenched Russian forces.
While the Australian government cites its support as the largest of any non-NATO state, its total contribution of A$610 million in military assistance is a lower amount per capita than comparable middle powers such as Canada. It is also lower overall than the contributions of many smaller countries, including Portugal, Estonia, Denmark, and Norway.
Australia has also declined to export Hawkei vehicles to Ukraine, despite heavy lobbying from the Ukrainian government.