Manufacturing capability is a central focus of new funding announced for Australian industry, with the Australian Submarine Agency (ASA) supporting $2.9 million in grants to eight local companies involved in the AUKUS nuclear-powered submarine program.
In a news release, ASA stated the funding forms part of the Australian Government’s Defence Industry Development Grants (DIDG) Program, which in its latest round allocated more than $17 million to 44 Australian businesses to support the delivery of priority defence capabilities.
The latest allocations bring total DIDG funding to more than $51 million following earlier rounds announced in May and July 2025. The program represents a total planned investment of $170 million.
Minister for Defence Industry Pat Conroy said the grants are intended to help expand and modernise Australia’s sovereign defence industrial base, including domestic manufacturing capacity.
“We’re backing Australian businesses, Australian workers and Australian innovation to deliver the capabilities the Australian Defence Force needs,” Conroy said.
He added that the projects are expected to help companies scale up, modernise and grow, contributing to jobs, skills development and industrial resilience.
The Australian Submarine Agency said the funding is aligned with preparations for increased submarine manufacturing and sustainment activity associated with the nuclear-powered submarine program under AUKUS.
Deputy Director General Strategy Alexandra Kelton said the eight projects bring the total number of DIDG projects supporting the nuclear-powered submarine program to 14, with a combined value of $6.75 million.
“These projects reflect our continued focus on readying Australian suppliers to the build and maintenance of our nuclear-powered submarines, and of our AUKUS partners as well,” Kelton said, describing the funding as part of efforts to develop a capable and resilient sovereign submarine supply chain.
Among the grant recipients, Franmarine in Western Australia has been allocated $1 million to commission a mobile underwater sustainment system, while Rosebank Engineering in Victoria has received $781,739 to establish a cold spray additive manufacturing facility.
Other recipients include Cowan Manufacturing in New South Wales; Levett Engineering, Global Welding Technologies Group and Secure State Consultants in South Australia; and Thrust Maritime and Jack Thompson Engineering in Victoria.
The Australian Submarine Agency said it also supports local industry through programs such as the Defence Industry Vendor Qualification Program and the Australian Submarine Supplier Qualification Pilot, delivered under a contract with HII Australia.
Further details on the grants are available through the Defence Industry Development Grants program website.
