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EUROPE
06 Aug 25. Spain shelves plans to buy F-35 fighter jets, El Pais reports. Spain has shelved plans to buy F-35 fighter jets, manufactured by U.S. aerospace giant Lockheed Martin (LMT.N), El Pais newspaper reported on Wednesday, citing unidentified government sources. The government had earmarked 6.25bn euros ($7.24bn) in its 2023 budget to buy new fighter jets, El Pais said. But the Spanish government’s plan to spend most of the additional 10.5bn euros for defence this year in Europe made it impossible to acquire U.S.-made fighter jets, the newspaper reported. Spain’s Socialist Prime Minister Pedro Sanchez announced plans earlier this year to increase spending on defence to meet the current NATO target of 2% of gross domestic product, and later refused to raise spending to 5% during a summit in June. (Source: Reuters)
02 Aug 25. Turkiye’s Defense, Aerospace Export Revenues Reached USD 1bn in July. President of the Turkish Presidency of Defence Industries (SSB) Haluk Gorgun said that Turkiye’s defense and aerospace exports grew by 128.4 percent in July, compared to July of last year. Gorgun posted on Turkish social media platform, Next Sosyal, on Saturday, saying that the country’s revenues from these exports reached USD 989.6m in July. Furthermore, the defense and aerospace sectors’ export in H1 2025 amounted to USD 4.591bn, marking a 38.6 percent increase compared to the same period last year. (Source: Google/https://qna.org.qa/)
USA
05 Aug 25. Startup Anduril becomes third U.S. SRM supplier amid rising defense demand. Defense technology startup Anduril Industries said on Tuesday it has become the third supplier of solid rocket motors (SRMs) to the United States, breaking a decades-long duopoly and addressing a critical bottleneck in missile production as global conflicts drive up demand. Rising geopolitical tensions — including the Russia-Ukraine war and ongoing conflicts in the Middle East — have fueled a global surge in demand for munitions, prompting militaries to replenish and expand their stockpiles. Until now, only L3Harris Technologies (LHX.N) and Northrop Grumman (NOC.N) have manufactured SRMs at scale in the U.S. Anduril said it has opened a full-rate SRM manufacturing facility in McHenry, Mississippi, which now employs more than 100 workers, up from 40 in early 2024. The company has already test-fired over 700 motors and aims to produce 6,000 tactical motors annually by the end of 2026. (Source: Reuters)
REST OF THE WORLD
07 Aug 25. Canada defense review makes case for sticking with F-35 jets, sources say.
- Summary
- Decision rests with Liberal government
- F-35 purchase cost 45% more than estimated, pilot shortage threatens project
- Buying European jets incurs extra costs, affects U.S. relations
Canadian defense officials have strongly made the case that Ottawa should stick to a plan to buy 88 Lockheed Martin Corp (LMT.N) F-35 fighter jets rather than splitting the order, two sources familiar with the matter said on Thursday.
The review stops short of making a formal recommendation, one of the sources said. The final decision rests with the Liberal government of Prime Minister Mark Carney, said the sources, who requested anonymity given the sensitivity of the situation. (Source: Reuters)
05 Aug 25. Australian Government approves landmark Strategic Shipbuilding Agreement with Austal. Austal Limited (ASX: ASB) has finalised its Strategic Shipbuilding Agreement (SSA) with the Commonwealth of Australia (“CoA” or “the Commonwealth”), which will appoint a newly created Special Purpose Vehicle and Austal subsidiary, Austal Defence Shipbuilding Australia (“Austal Defence Australia”), as the Commonwealth’s strategic shipbuilder for Tier 2 surface combatants at Henderson, Western Australia. The Commonwealth Government has now approved the terms of the SSA. Following this approval, the formal SSA and related contract documentation are currently being prepared and will be executed imminently. This follows Austal’s announcement to ASX of the Heads of Agreement to establish the SSA on 23 November 2023. Under the SSA, Austal Defence Australia will become the prime contractor for the build and delivery for the LAND8710 programs – Landing Craft Medium (expected to be 18 vessels) and Landing Craft – Heavy (expected to be 8 vessels), previously announced as the pilot shipbuilding programs under the SSA. Austal and the Commonwealth are currently in discussions to finalise contractual arrangements for each of the two pilot programs and, subject to conclusion of those discussions, details of each pilot program will be announced separately.
Austal CEO Paddy Gregg said: “The government’s approval of the SSA is a defining moment for Austal. It will establish Austal Defence Australia as the Commonwealth of Australia’s strategic shipbuilder for Tier 2 vessels in Western Australia and reflects both Austal’s excellent defence shipbuilding record and the capabilities that Austal possesses to help the Australian Government to achieve its defence objectives. The Commonwealth seeks to ensure Australia’s Defence procurement possesses sovereignty and greater certainty and resilience across the naval ship supply chain in an increasingly complex strategic environment and in alignment with the Commonwealth’s continuous naval shipbuilding policies. Through the SSA, Austal is committed to helping the CoA meet these objectives while establishing Austal Defence Australia as the CoA’s shipbuilder of choice in WA.”
The SSA will establish a management framework and common terms through which Austal Defence Australia will deliver the Commonwealth’s key Tier 2 surface shipbuilding programs in Western Australia under shipbuilding contracts, using a variety of key contractors and suppliers including, but not limited to, Austal’s other shipbuilding entities. Shipbuilding programs under the SSA will generally be structured on a ‘Target Cost Incentive’ basis which will provide reimbursement of the SSA entity’s allowable costs plus a profit margin, which will be subject to ‘painshare/gainshare’ adjustments. The SSA will also seek to develop a robust supply chain in the Henderson shipbuilding precinct to deliver the Commonwealth’s continuous naval shipbuilding capability in Western Australia and meet strategic objectives for the development of Australian sovereign shipbuilding capability (“Strategic Objectives”). Although details of the SSA pilot programs are still being determined, Austal anticipates that Austal Defence Australia will generate significant revenue from the SSA (for its management and delivery of the Landing Craft-Medium program) over the 8-year term of the proposed Landing Craft-Medium contract, in addition to the construction revenue that will be accrued by Austal Ships. The revenue earned by Austal Defence Australia for management and delivery of the Landing Craft – Heavy project, if awarded, remains to be determined although it is noted that this would be a substantially larger project than the Landing Craft – Medium project. Other Strategic Objectives include the provision of timely and efficient capability acquisition to ensure Defence readiness; to deliver a sovereign and continuous naval design and shipbuilding capability that consistently supports the delivery of schedule and budget targets; and to develop the involvement of the local Supply Chain in design, build and through-life support.
“Utilising our decades of experience, Austal can contribute significant expertise to Australia’s sovereign shipbuilding base to reduce costs and improve the performance of vessels for the Australian men and women who work tirelessly to protect our shores,” Mr Gregg said.
The design and construction of the Landing Craft Medium (“LCM”) is intended to be the first program to be awarded and delivered under the SSA. The CoA and Austal expect contracts for the LCM program to be finalised in Q1 FY2026 and that these will provide for the construction of 18x LCMs for the Australian Army over eight years for a price of A$1-1.3 bn. The final vessel is expected to be scheduled for delivery in 2032. Subject to resolution of contractual discussions, delivery of the 8 x Damen-designed LST100 Landing Craft Heavy vessels for the Australian Army, announced by the Commonwealth in November 2024, is expected to follow the Landing Craft – Medium, with the Commonwealth and Austal expected to be under contract by the end of the 2025 calendar year. (Source: ASD Network)
05 Aug 25. Japan nabs $10bn frigate deal. Deputy Prime Minister and Defence Minister Richard Marles and Minister for Defence Industry Pat Conroy have formally revealed the long-anticipated winner of the $10bn SEA 3000 general purpose frigate contract. Defence Connect can officially reveal that the Albanese government is accelerating the delivery of a larger and more lethal surface combatant fleet with the selection of the upgraded Japanese Mogami Class frigate as the preferred platform for the Royal Australian Navy’s future fleet of general purpose frigates. The decision comes following a competitive and comprehensive tender process, during which Defence assessed the Mogami Class as the most capable option to rapidly meet the strategic requirements of the Australian Defence Force (ADF). The decision comes months ahead of schedule, signalling the government’s commitment to transforming the ADF into a more integrated, responsive and combat-ready force. The advanced Mogami Class frigate, in its upgraded configuration, offers a range of up to 10,000 nautical miles and is equipped with a 32-cell vertical launch system (VLS), advanced surface-to-air missiles, and potent anti-ship missile capabilities, making it a highly versatile asset for modern naval operations.
Deputy Prime Minister Marles said, “The upgraded Mogami Class frigate will help secure our maritime trade routes and our northern approaches as part of a larger and more lethal naval surface combatant fleet. The Albanese government is delivering these commitments at pace, as part of our sustained commitment to continuous naval shipbuilding in the West – driving jobs, investment and infrastructure for decades to come.”
It is designed with a strong focus on versatility, automation and reduced crew requirements, the Mogami Class marks a significant shift in Japan’s approach to warship design, combining cutting-edge sensors, stealth features and a modular architecture to enable a broad range of missions from anti-submarine and surface warfare to mine countermeasures and disaster response. Constructed by Mitsubishi Heavy Industries and Mitsui E&S Shipbuilding, the Mogami Class features an advanced radar cross-section-reducing design, a compact and highly automated combat management system and is fitted with a 127mm main gun, 32 VLS cells and a suite of anti-ship and anti-air weapons. The class also incorporates a major innovation in its multipurpose mission bay and deployable unmanned systems, allowing the frigate to operate in contested environments with minimal risk to crew. The evolved Mogami Class, sometimes referred to as the FFM Batch II and which Australia will be procuring, represents an iterative improvement on the original design. It incorporates lessons learned from initial deployments, enhanced weapon loadouts (including increased VLS capacity), and refinements to its systems integration and endurance. The evolved variant continues Japan’s strategy of fielding compact yet highly capable surface combatants to address threats across the grey zone, high-end conflict and humanitarian assistance missions.
The Deputy Prime Minister said, “We thank both Mitsubishi Heavy Industries and Thyssenkrupp Marine Systems, as well as the governments of Japan and Germany for their focus and cooperation throughout this procurement process.”
The government will now proceed with the next stage of the procurement process, entering commercial negotiations with Mitsubishi Heavy Industries and the government of Japan, with formal agreements targeted for 2026. Minister Conroy celebrated the announcement, saying, “The upgraded Mogami Class frigate is the best option for our Navy, boosting its capability to put to sea. It will take our general purpose frigates from being able to fire 32 air defence missiles to 128 missiles, giving our sailors the cutting‑edge weapons and combat systems they need to prevail in an increasingly complex environment.”
As outlined in the government’s response to the Independent Analysis of Navy’s Surface Combatant Fleet, the first three of the new general purpose frigates will be built offshore. Under the accelerated program, construction will begin in Japan, with the first vessel scheduled for delivery to Australia in 2029 and expected to reach operational service in 2030.
This timeline delivers a significant capability boost five years earlier than anticipated under the former Coalition government’s plan. Subsequent vessels will be built in Australia, contingent on the successful consolidation of the Henderson shipbuilding precinct in Western Australia. This aligns with the government’s broader commitment to a sustainable, continuous naval shipbuilding program.
Minister Conroy added, “This decision comes months ahead of schedule, reinforcing our commitment to deliver of capability at speed and at a lower overall cost to taxpayers. It makes good on our commitment to deliver four times as many warships in the next 10 years compared to the plan inherited by the former Coalition government.”
Over the next 20 years, tens of bns of dollars will be invested into Western Australia’s defence industrial base, supporting approximately 10,000 high-skilled, secure jobs. This investment forms a key part of the Albanese government’s AU$55 bn commitment over the next decade to expand and upgrade Navy’s surface combatant fleet. The Federal Opposition welcomed the Government’s announcement with acting shadow defence minister, Andrew Hastie saying, “In an increasingly dangerous world, the Mogami-class frigate will play in important role in defending Australia and maintaining peace in the Indo Pacific … Labor needs to get moving. It has taken the Albanese Government more than two years to make this decision, and we cannot afford more delays.” Meanwhile, shadow minister for defence industry and defence personnel, Senator Jacinta Nampijinpa Price said, “While we welcome the Government’s decision to acquire the Mogami-class frigates, this decision should not detract from the urgent need to strengthen our sovereign industrial base for building missiles, drones and other asymmetric capabilities at speed and scale.”
The new general purpose frigates will replace the ageing Anzac Class and will be equipped for undersea warfare, air defence and broader regional missions. They will serve alongside the Hunter Class frigates, upgraded Hobart Class destroyers and new missile systems as part of the government’s plan to more than double the size of the Navy’s surface combatant force. This marks a turning point for the ADF, boosting sovereign capability, deepening strategic ties with Japan and fast-tracking critical defence capability in an increasingly contested regional environment. (Source: Defence Connect)
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Since 1946, Industrial Electronic Engineers, IEE, has specialized in the design, test, support and fielding of display products for use in demanding military and aerospace applications throughout the world. IEE has developed an extensive product portfolio that today includes enhanced flat panel displays, smart displays and handheld devices.
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