Aurora Labs secures $544K defence grant to boost local propulsion system manufacturing

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Image credit: Aurora Labs

Aurora Labs Limited has been awarded more than half a million dollars in federal funding to support the expansion of its production capabilities for gas turbine propulsion systems, aimed at strengthening Australia’s sovereign defence supply chains.

The $544,333 grant, awarded under the Defence Industry Development Grants Program’s Sovereign Industrial Priorities Stream, will enable the Australian company to acquire and install advanced capital equipment at its Canning Vale facility in Western Australia. 

The funding, delivered on a 50/50 co-investment basis, is part of the government’s strategy to support small and medium-sized enterprises (SMEs) in delivering critical defence capabilities locally.

Aurora, a specialist in industrial 3D metal printing and printed propulsion systems, said the grant will facilitate the procurement of high-precision multi-axis CNC machining centres and HVAC temperature control systems. 

These technologies will be used to enhance the performance and reliability of Aurora’s proprietary micro gas turbine propulsion systems, which are developed for Unmanned Aerial Vehicles (UAVs) and other autonomous platforms.

“This grant is not just an investment in Aurora—it’s an investment in sovereign capability,” said Rebekah Letheby, Chief Executive Officer of Aurora Labs. 

“By building end-to-end manufacturing capability onshore, we’re positioning Australia to independently develop and supply propulsion technology that is critical to the future of our country’s defence autonomy.”

The company said the upgrade will allow it to vertically integrate key production processes onshore—from additive manufacturing of complex components to final assembly—helping reduce reliance on foreign suppliers and increasing Australia’s ability to respond to strategic defence needs.

“The program accelerates Aurora’s ability to deliver on our vision of a sovereign, vertically integrated propulsion supply chain,” Letheby said.

The Sovereign Industrial Priorities Stream, under which the grant was awarded, supports SMEs in acquiring manufacturing equipment directly used in delivering programs aligned with national defence objectives. 

These include the development of autonomous systems and the local production of guided weapons and explosive ordnance.

Aurora said the funding will also go toward workforce training to ensure safe and precise operation of the new equipment, and to support the fulfilment of expected domestic defence contracts in aerospace and maritime sectors.

To match the grant, Aurora is currently in discussions with third-party lenders to secure the remaining funds on commercial terms. 

All activities under the grant are scheduled for completion by 28 March 2026, in accordance with the Department of Defence’s guidelines.

The grant award comes as Aurora prepares for upcoming orders of its propulsion technology, which the company says addresses a growing demand for high-performance, locally manufactured systems within the Australian defence sector.