A locally developed long-range strike weapon has been overlooked for a $2 billion Australian Army purchase, with Defence instead selecting an American made product despite concerns the Pentagon could further limit exports of its missiles during the Iran war.

On Tuesday the Albanese government will confirm it has chosen to increase its High Mobility Artillery Rocket System (HIMARS) and Precision Strike Missile (PrSM) capability, to deliver a second long-range fires regiment based in South Australia.

Under Project 8113, Defence has been evaluating whether to purchase more HIMARS or a cheaper Australian designed product known as StrikeMaster, which utilises a pair of Norwegian designed Naval Strike Missiles (NSM) mounted on top of a Bushmaster vehicle.

In 2023 the government finalised an initial deal to buy 20 of the truck-mounted HIMARS weapons, which had been used with devastating effectiveness by Ukraine against invading Russian forces.

The government says the $2.3b investment will be a major enhancement to the Australian Army’s long-range strike capability, in line with the latest National Defence Strategy which calls greater capacity to protect the country at distance.

“This is a decisive investment in Australia’s long‑range strike capability that will bolster our Defence Force and help keep Australians safe,” Defence Minister Richard Marles said in a statement.

Since the Iran war began the Pentagon has limited some weapons exports to allies, but Defence Industry Minister Pat Conroy insists Australian HIMARS will use missiles assembled locally, using parts imported from the United States.

“We’re already making missiles that can be fired from the HIMARS – and this decision will create even more demand for PrSM missiles within the Australian Army and deliver more opportunities for PrSM manufacture in Australia.”

“To defend Australia, our Army needs a stronger long-range strike capability – and we’re delivering it.”

The Lockheed Martin developed HIMARS have a current operational range to over 500 km, but the United States military believes the developmental PrSM platform will eventually be able to strike targets beyond 1000 km.

The first Australian-assembled Guided Multiple Launch Rocket System (GMLRS) missile was test-fired by an Australian HIMARS this month, and last year Australia and the US established a cooperative program for PrSM, paving the way for future domestic production.