The Albanese Government is bolstering Australia’s manufacturing sector and defence capabilities through a $16.5 million investment in more than 50 businesses across the country.
The funding, delivered under the Defence Industry Development Grants program, aims to accelerate the growth of sovereign manufacturing, support hundreds of jobs, and deliver advanced capabilities vital to national security.
Through the program’s first round, 58 competitive grants were awarded across four streams – sovereign industrial priorities, export, skilling, and security – helping businesses meet Defence requirements, expand production and upskill workers.
Several grants directly fund manufacturing upgrades for defence platforms such as submarines, aerospace systems, armoured vehicles, drones, and guided weapons.
“This investment by the Albanese Government in local businesses and jobs will provide vital support to people who are making a critical contribution to our national security and a future made in Australia,” said Minister for Defence Industry, the Hon Pat Conroy MP.
Four manufacturers – in South Australia, Queensland, Western Australia, and Victoria – each received $1 million under the sovereign industrial priorities stream to enhance the local production of critical defence components.
Projects include acquisition of high-precision CNC machinery, composite manufacturing automation, and capabilities for advanced naval shipbuilding and propulsion systems.
Other grant recipients include Black Sky Aerospace (QLD), which will use $910,389 to enhance the manufacture of solid rocket propellant, and Intellidesign (QLD), which received $774,347 to boost electronics manufacturing for defence supply chains.
Victoria’s Infinite Manufacturing was granted $925,947 for large-scale precision component production, while Australian Intelligent Machines secured $564,826 to manufacture counter-drone systems.
“The Albanese Government is committed to supporting Australian small to medium enterprises and growing the skills of our workforce to build Australia’s sovereign capability, global competitiveness, technical superiority and national security,” Minister Conroy said.
Beyond core manufacturing upgrades, more than 200 workers in the defence industry will receive technical training through the skilling stream, and a range of businesses will boost their cyber, personal and physical security postures to meet Defence compliance.
“The new Defence Industry Development Grants initiative creates one cohesive program, contributing to a stronger and more resilient sovereign defence industry that is able to meet the challenges of the future,” Conroy added.
The program offers matched funding of up to 50 per cent and remains open to applications year-round until 2028, reinforcing the government’s ongoing support for homegrown manufacturing and defence innovation.
