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Australia is expected to ink what is likely to be the country's largest ever defence export deal, reportedly up to the value of $3 billion, by supplying Boxer combat vehicles built in Queensland to the German military.
Key points:
- The value of the contract is likely to exceed that of all Australia's defence exports for the year 2020-21
- The Australian Army's 2nd/14th Light Horse Regiment are testing new Boxer vehicles
- The new eight-wheel-drive Boxer CRV is expected to enhance the safety, security and protection of Australian troops
The total value of the deal is not yet confirmed, but it is expected Australia will sell 100 Boxers to the German government.
The value of the contract is likely to exceed that of all Australia's defence exports for the year 2020-21.
"This export opportunity would secure well-paid secure jobs in Queensland and across the country, helping to build Australia's defence industry and boost our economy," federal Minister for Defence Industry Pat Conroy said.
"We are keen to export this world-leading capability to a trusted and respected security partner, and to further strengthen the defence relationship between our countries."
Negotiations on the export deal could be finalised by the end of the year.
Australian Army orders 211 Boxers
The Australian Army has ordered 211 of the combat reconnaissance vehicles (CRV) for its own use, with the first tested in a live-fire exercise this week in Queensland's Tin Can Bay.
The bulk of that order will be manufactured in Brisbane by Rheinmetall Australia as part of a $5.2 billion deal that the Queensland government said would create 600 local jobs.
A new export contract with Germany would ramp up the facility's production requirements, with suppliers from across Australia also involved in the work.
Rapid replenishment required
A year into the war in Ukraine, Germany, along with other NATO members, has sent significant defence stocks, including vehicles, armour and ammunition, to Ukraine to assist in its defence against the Russian invasion.
That has necessitated the rapid replenishment of military equipment among western European countries.
It is unknown whether the Boxer combat vehicles destined for Germany or the fleet of vehicles already ordered for the Australian Army would be built first under the export deal.
The Australian Defence Export Office put the total value of Australia's defence exports in 2020-21 at $2.6 billion — meaning this single deal with Germany is likely to exceed that figure.
The precise value of all Australia's defence exports is difficult to ascertain as different Australian agencies use different calculation methods and some deals remain commercial in confidence.
Troops undergo live-fire exercise
The Boxers are used for surveillance and combat protection and are mounted with superior cannon power to their predecessors, the Australian Light Armoured Vehicle (ASLAV).
Weighing in at 36 tonnes, with a top speed of 105 kilometres per hour and equipped with a 30-millimetre automatic cannon, the Boxer was put through its paces by the Army's 7th Brigade in a military exercise this week.
The Army's 2nd/14th Light Horse Regiment tested its capabilities at the Wide Bay Training Area at Tin Can Bay.
Although a welcome upgrade from its predecessor the ASLAV, switching over comes with its challenges.
Cavalry Troop Leader Lieutenant Aaron Ivers said the staged training approach was crucial to making sure soldiers understood how to handle the new vehicle.
"We start small and work our way up to larger manoeuvre exercises and we make sure everyone in the troop is comfortable in that progression of training to meet that high standard," he said.
"The obvious change is the size … the Boxer is larger than the ASLAV and also the array of weapons systems that they have.
"We have a 30mm Mark II which is an upgrade from the ASLAV 25mm."
'As smart as a human'
The new eight-wheel-drive Boxer CRV is expected to improve greater protection to Australian troops in battle and will be used for the next 30 years.
The 25 Boxers already supplied to the Army were built in Germany, but the remainder of the 211 due to be delivered will be produced at Rheinmetall's Brisbane facility.
Squadron 2nd in Command Lieutenant Dane Brooks said the exercise at Tin Can Bay had been running smoothly.
"The vehicle is exceptionally capable in what it can do and we are learning to manipulate that every single day," he said.
"This vehicle contains two principal weapons systems, a 30mm automatic cannon and a 7.62mm machine gun.
"This vehicle provides us with a multitude of capabilities such as increased lethality, increased survivability and manoeuvrability around the battle space.
"It's basically just as smart as a human at times, so we are learning to evolve with that every single day."