Australia will buy US missiles at a cost of A$7 billion ($4.7 billion) to boost its long-range strike capabilities, with Defence Industry Minister Pat Conroy warning of “the greatest arms race” in the region since 1945.

Australia said on Tuesday it would bolster air and missile defence in a A$7 billion ($4.7 billion) deal with the United States to acquire SM-2 IIIC and SM-6 long-range missiles for its navy. The Australian navy test-fired the Raytheon SM-6 missile from a ship in August during exercises with the United States in Hawaii.

Deputy Prime Minister and Defence Minister Richard Marles said the $7 billion missile agreement showed how the federal government was advancing the strike power of the navy's warships. Conroy warned the world was facing the gravest arms race since World War II.

Pacific, Canberra is set to spend nearly $5 billion on a series of cutting-edge medium and long-range missiles from the US.

Australia announced this week it was buying $4.7 billion in American-made SM-2 and SM-6 missiles - two of the world's most advanced air defense interceptors - in a colossal foreign military sale. The two governments finished the deal this spring but unveiled it Tuesday,

The plan to acquire the Raytheon-made SM2 IIIC and SM6 type missiles was announced as part of a ministerial visit to Washington. It follows the signing of the Aukus alliance with the US and UK and an overhaul of Australia’s naval force designed to adapt to China’s military buildup.

Australia has announced a major investment of $4.68 billion (A$7 billion) to acquire SM-2 and SM-6 anti-aircraft missiles for its Navy, according to a report by Breaking Defense. "The Standard Missile 6 and Standard Missile 2 Block IIIC will enable our Navy to strike long-range sea,