Australia to Acquire $1 Billion Worth of Advanced AMRAAM Missiles in Major U.S. Defense Deal

In a significant boost to regional security and allied cooperation, the United States has approved the sale of up to 400 cutting-edge AIM-120 air-to-air missiles to Australia, in a deal worth approximately USD 1.04 billion. The proposed foreign military sale, which was greenlit by the U.S. Department of State and formally notified to Congress on April 9, marks a new milestone in U.S.-Australia defence ties.

Under this major arms package, Australia aims to procure 200 AIM-120C-8 and 200 AIM-120D-3 Advanced Medium Range Air-to-Air Missiles (AMRAAMs), alongside containers, spare parts, diagnostics, training, and support services. These missiles are manufactured by RTX Corporation—one of the leading American defense contractors—and will be deployed by the Royal Australian Air Force (RAAF).

The missiles will be integrated into Australia’s most capable fighter jets, including the F-35A Lightning II, F/A-18F Super Hornet, and E/A-18G Growler. These jets form the backbone of Australia’s air combat fleet, and equipping them with the most advanced variants of AMRAAMs will significantly boost their effectiveness against modern threats, especially in the increasingly contested Indo-Pacific region.

But the utility of these missiles isn't limited to fighter aircraft. The AMRAAMs are also key components in Australia's NASAMS (National Advanced Surface-to-Air Missile System), which provides layered ground-based air defence. The addition of the C-8 and D-3 variants, particularly the AIM-120D-3—the latest in the AMRAAM family—will enhance both air-to-air and ground-based defence capabilities.

The AIM-120D-3 boasts improved range, advanced targeting precision, and greater resistance to jamming and electronic warfare, making it one of the most sophisticated missiles in the U.S. arsenal. Australia is set to become one of the first international operators of the D-3 variant, ahead of other countries still in negotiations for the system.

This sale does not require the deployment of U.S. personnel or contractors in Australia and won’t affect the readiness of American forces. According to the U.S. Defense Security Cooperation Agency, “Australia will have no difficulty absorbing this equipment and services into its armed forces,” highlighting the RAAF’s high level of operational sophistication.

Strategically, this missile sale underscores growing U.S. efforts to strengthen regional allies amid rising tensions in the Indo-Pacific. It also reinforces Australia’s evolving defence doctrine, which increasingly emphasizes deterrence through advanced technology, readiness, and alliance-based security.

While no offset arrangements have been finalized yet, these may be negotiated directly between RTX and the Australian government in the coming months.

As security dynamics shift and great-power competition intensifies in the region, this sale reflects the shared commitment between the U.S. and Australia to maintain peace, deter threats, and ensure that allied forces are equipped with the best available tools for modern warfare.