AUKUS: Powering the next era of defense in Australia, the US, and UK

Royal Australian Air Force (RAAF) F-35A Lightning IIs, assigned to the No. 3 Squadron, arrive to receive fuel from a U.S. Air Force KC-46A Pegasus from the 13th Expeditionary Aerial Refueling Squadron over Australia during Talisman Sabre 23, Aug. 1, 2023. Photo by Tech. Sgt. Eric Summers, Pacific Air Forces.

Australia is focused not only on submarines and missiles, but also the global F-35 fleet that is facing a critical need for enhanced cooling to support next-generation systems. Australia is strategically positioned to become the Indo-Pacific’s premier hub for F-35 sustainment and upgrades.

Breaking Defense spoke with Matt Milas, President of Defense and Space at Honeywell Aerospace Technologies, about the opportunities ahead–including the competition to upgrade the Power Thermal Management System (PTMS) for the global F-35 fleet.

A 60-year partnership built on trust

Breaking Defense: Honeywell has been working with the Australian government and industry for over 60 years. What has made that partnership so successful?

Matt Milas is president of Defense and Space at Honeywell Aerospace Technologies.

Milas: Honeywell has built a foundation of trust and performance in Australia. With 1,700+ employees across every state and territory, our technology is deeply embedded in Australia’s most critical defense assets–including the F-35 Joint Strike Fighter, M1 Abrams Main Battle Tank (AGT1500 engine), and CH-47 Chinook Helicopter (T55 engine).

But we’re not just relying on past success. We are doubling down on our commitment to AUKUS Pillar 1 and Guided Weapons and Explosive Ordnance (GWEO) by aggressively investing in defense technologies, expanding industrial partnerships, and accelerating capability transfers to integrate Australia into global defense supply chains.

The evolution of Australia’s defense industrial base

How is Australia’s defense industrial base evolving under AUKUS?

The shift is monumental. Australia is no longer just a buyer of defense technology; it’s becoming a global producer and sustainment hub.

The government is backing this transformation with major investments in Adelaide, Geelong, Brisbane, and Western Australia, aimed at strengthening submarine and maritime capabilities.

But ambition alone won’t get the job done. Workforce readiness is the critical challenge. Scaling up to meet the demands of nuclear-powered submarines and high-tech missile systems requires a highly skilled workforce. Australia has proven it can do this in the resource sector—now it must apply that same ingenuity to defense.

The F-35 fleet’s PTMS upgrade: A clear choice

The F-35’s Power Thermal Management System is due for an upgrade. Why should the U.S. and its allies stick with Honeywell’s system rather than replacing it?

Because the alternative introduces unnecessary risk, cost, and disruption.

Honeywell’s PTMS is a battle-proven system with over one million flight hours across more than 1,100 aircraft, providing critical functions such as environmental controls, emergency power, oxygen generation, and advanced cooling.

Our upgrade path is straightforward: increase cooling from 32 kW to 62-80 kW to support future mission needs. And here’s the game-changer–our solution reuses 95 percent of existing hardware and 80 percent of software, ensuring minimal risk, seamless integration, and no costly airframe redesigns.

Contrast that with an unproven, brand-new system–massive development costs, years of delays, and unforeseen compatibility issues. The F-35 program cannot afford that.

Our upgrade is the lowest-risk, highest-performance path forward.

Establishing PTMS depot capabilities in Australia

What’s the strategy for establishing PTMS depot capabilities in Australia and the broader Indo-Pacific?

Speed and scale.

We’ve already stood up PTMS depot capabilities in the U.S. (Phoenix, Torrance, Cherry Point) and Europe (Netherlands). Now, Australia is next.

We’re partnering with Rosebank, a long-term trusted collaborator, to establish in-country PTMS sustainment capabilities. The strategy is clear: wherever the F-35 flies, we ensure a fully operational depot network—eliminating costly delays and bolstering regional readiness.

AUKUS Pillar 1: Australia’s role in nuclear submarine sustainment

What role will the Australian defense industrial base play in AUKUS Pillar 1?

Australia is on the fast track to becoming a global leader in nuclear-powered submarine sustainment.

The U.S. Navy’s transfer of Virginia-class submarines under AUKUS represents a generational leap for Australian defense—one that requires a complete industrial and workforce transformation.

The USS Minnesota (SSN 783) recently docked at HMAS Stirling in Perth, marking Australia’s first step toward supporting and eventually manufacturing Virginia-class submarines.

Let’s be clear, the U.S. can’t build Virginia-class submarines fast enough for its own fleet–let alone Australia’s. The only way forward is for Australia to expand its manufacturing capacity and integrate into the global supply chain.

Honeywell is at the forefront of this effort. We were recently awarded a contract by BlueForge Alliance to activate the AUKUS Submarine Industrial Base in Australia. This initiative isn’t just about technology transfer–about securing a sovereign industrial base that can sustain and build the next generation of undersea warfare.

AUKUS Pillar 2: Establishing a sovereign missile capability

How does missile production under AUKUS Pillar 2 fit into this transformation?

Australia must have sovereign sustainment capabilities for its missile arsenal. Right now, critical missile components must be sent back to the U.S. for calibration, testing, and overhaul–a vulnerability Australia cannot afford in a contested Indo-Pacific.

Honeywell provides navigation and guidance systems for virtually every missile in Australia’s arsenal. Our plan is clear: step 1 is to establish an in-country depot for navigation guidance system testing and calibration; step 2 is to expand capacity for production, final assembly, and testing of missile systems in Australia; and step 3 is to localize key component manufacturing to create an end-to-end sovereign missile production capability.

Australia is prioritizing three critical programs. They are: GMLRS, where we’re partnering with Lockheed Martin to establish in-country production; Evolved Sea Sparrow Missile (ESSM), where we’re providing navigation guidance and actuation systems; and Precision Strike Missile (PrSM) where we’re supporting Lockheed Martin Missiles and Fire Control.

The future of AUKUS: Australia as a global defense leader

Final thoughts?

This is a once-in-a-generation opportunity to transform Australia into a global leader in defense technology and manufacturing.

Honeywell is all-in–ensuring Australia has the infrastructure, technology, and expertise to compete on the world stage while supporting the U.S. and U.K. in securing the Indo-Pacific.