iscover
Minister for Defence Industry Pat Conroy has announced $16.5 million in grants for 50 Australian businesses, aimed at strengthening the nation’s defence manufacturing capability, workforce skills and security readiness.
In the first round of the Defence Industry Development Grants program, 58 grants have been distributed across four key streams: sovereign industrial priorities, exports, skilling and security. The initiative is designed to foster a more resilient and sovereign defence industry while creating and supporting hundreds of local jobs.
Minister Conroy said the program is a crucial part of the government’s commitment to strengthening Australia’s defence capabilities through local industry.
“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,” Minister Conroy said.
Among the most significant grants are four $1 million allocations to companies in South Australia, Queensland, Western Australia and Victoria under the sovereign industrial priorities stream. These grants will support the manufacture of components for submarines, guided weapons, aerospace systems and armoured vehicles.
Recipients include:
- Nu Metric Manufacturing (SA) – acquiring a hydroform press for complex sheet metal component production.
- Veem (WA) – purchasing advanced CNC machinery to manufacture propellers and other marine components.
- Advanced Composite Structure Australia (VIC) – automating composite manufacturing for underwater drones.
- Hardman Bros (VIC) – enhancing gear grinding capabilities for defence land programs.
Other companies across Australia are investing in advanced manufacturing equipment to support development in areas such as drone and anti-drone systems, radar, communications, cyber security and robotic technologies.
Minister Conroy added, “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.”
More than 200 employees in defence-related industries will benefit from targeted technical training under the program’s skilling stream. Grants are being used to upskill workers in areas such as non-destructive testing, naval fabrication, cyber security and project management.
Some recipients include:
- Franmarine Underwater Services (WA) – training divers for underwater defence sustainment.
- Century Engineering (SA) – enhancing manufacturing and cyber capabilities for naval shipbuilding.
- SYPAQ Systems (VIC) – providing advanced technical education in cyber and radar operations.
Nine businesses received grants to expand their export capacity, including:
- DroneShield Group (NSW) – accelerating production of its Drone Sentry-X Mk2 system for export to the United States.
- Trakka Systems (VIC) – boosting manufacturing of critical wiring and searchlight systems for global defence markets.
- Alfatron (VIC) – enhancing production of high-density PCBs for drones and surveillance systems.
A further 14 businesses secured funding to upgrade their physical and cyber security to Defence-required standards. This includes investments in advanced surveillance systems, access control infrastructure and cyber security training.
Minister Conroy said, “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.”
The Defence Industry Development Grants program offers 50:50 matched funding and remains open to applications year-round until 2028. The government says the program streamlines existing grant structures into a single, cohesive initiative designed to deliver long-term benefits to Australia’s defence supply chain and national security.
A full list of grant recipients across all streams has been published by the Department of Defence here.
Stephen Kuper
Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.
