The Australian Defence Force and the US Armed Forces will develop joint precision missile capability to improve their interoperability and modernize their armies.

Australia will contribute $70 million to the Precision Strike Missile (PrSM) program launched for this purpose, which aims to improve the long-range precision firing capabilities of both armies.

The memorandum of understanding signed within the scope of the project, which is worth 907 million dollars in total, is expected to contribute to the Australian industry with indigenous component production, maintenance, repair, weapons surveillance and research.

Prime contractor of the system, Lockheed Martin, aims to have two missiles in each launcher and the missiles to hit targets between 60 and 499 km with low CEP (circular error probable) values.