In a significant development for Australia’s defense manufacturing capabilities, NIOA, an Australian munitions manufacturer, has entered into a memorandum of understanding with the European defense company MBDA. This partnership aims to establish the production of Mistral very short-range air defense (VSHORAD) missile systems within Australia. If the agreement comes to fruition, Australia would become the first country outside France to manufacture the Mistral missile system.
The memorandum will investigate multiple options, including local assembly and the production of Australian-made warheads for the Mistral suite. Additionally, it could open avenues for Australia’s participation in MBDA’s global supply chain related to the Mistral missiles. This initiative aligns with the Australian government’s Defence Industry Development Strategy, which emphasizes building deeper industrial ties with established international allies.
NIOA Group CEO Rob Nioa remarked on the partnership, emphasizing the alignment with the Australian government’s push for enhanced domestic manufacturing of diverse munitions. He stated, “MBDA are world leaders in the missile industry. With the Australian government’s focus on domestic manufacturing of a wider range of munitions and the expansion of partnerships with industry, the timing is right for NIOA and MBDA to take this first and significant step.”
Nioa also highlighted the importance of co-design, co-development, co-production, and co-sustainment in enhancing defense industrial capacity and interoperability. This collaborative approach could lead to accelerated technology development, leveraging the combined resources of both companies.
The agreement is particularly strategic for MBDA, who has reportedly quadrupled Mistral production to meet rising global demand and expedited delivery timelines, now producing 40 missiles per month. Recent procurement activities indicate strong interest in the Mistral systems; for instance, Romania secured 300 man-portable Mistral 3 systems for approximately 626 million euros ($724 million). Additionally, a framework agreement involving Belgium, Cyprus, Estonia, Hungary, and France to jointly acquire the missile underscores its growing significance on the international stage.
The Mistral missile system is known for its versatility and precision, designed to counter a wide range of aerial threats including aircraft, drones, cruise missiles, and armed surface vessels. The Mistral 3, the latest iteration, has recently demonstrated successful capabilities in trials focusing on targets like surface vessels and low-observable drones.
With an interception range of 8,000 meters (about 26,247 feet) and an altitude ceiling of 6,000 meters (approximately 19,685 feet), the missile boasts high maneuverability and supersonic speed. According to MBDA, it is also resistant to all known infrared countermeasures, marking it as a significant asset in modern defense arsenals.
As this partnership unfolds, it could herald a new chapter for Australia’s defense capabilities, reinforcing its position in the global defense landscape and enhancing its operational readiness in an increasingly complex security environment.













