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Minister for Defence Industry Pat Conroy has announced more than $17.3 million in grant funding as part of the latest round of Defence Industry Development Grants Program.
This funding forms part of the government’s $170 million Defence Industry Development Grants (DIDG) Program which provides targeted assistance to small and medium Australian defence businesses across four key streams: sovereign industrial priorities, exports, skilling and security.
The newly awarded grants come in addition to a $16.5 million package for 58 businesses announced earlier this year, bringing total support under the program to more than $33.8 million across 98 projects in 2025 alone.
Minister Conroy said the program is helping position local businesses to support major defence priorities, including the AUKUS nuclear-powered submarine program and broader initiatives outlined in the 2024 National Defence Strategy.
“These grants will help deliver critical sovereign capability to the Australian Defence Force, create high-skilled secure jobs and build Australian industry,” Minister Conroy said.
Among the most strategically significant initiatives in this round are six projects worth $3.6 million facilitated through the Australian Submarine Agency. These grants are focused on helping Australian companies gear up to support supply chains for conventionally armed, nuclear-powered submarines being delivered under AUKUS.
The grants support matched funding of up to 50 per cent of eligible project costs. Individual grants can range from $5,000 to $1 million, depending on the stream.
Notable recipients under the sovereign industrial priorities stream include:
- ANCA Engineering Solutions (Victoria) – $1 million for precision manufacturing tools to support uncrewed aerial vehicles and Redback infantry fighting vehicle components.
- Griffin Marine Services (Western Australia) – $1 million for robotic and precision welding equipment to support Ghost Shark serial production.
- HIFraser (NSW) – $1 million for equipment to manufacture maritime defence system valves.
- Veem (WA) – $2 million across two grants for CNC machines and a 3D sand printer to support submarine and naval component production.
- Fleet Space Technologies (South Australia) – Nearly $1 million to scale satellite manufacturing capabilities.
- Carbonicboats (NSW) – $585,049 to scale intelligence, surveillance and reconnaissance platforms for autonomous systems.
- Baker & Provan (NSW) – Over $550,000 for Hunter Class frigate component production.
- Aurora Labs (WA) – $544,000 for machining turbines and 3D-printed components for guided weapons and autonomous systems.
Minister Conroy added, “We are backing Australian industry to deliver the capabilities our Defence Force needs while ensuring Australians benefit from the economic opportunities of defence investment.”
The DIDG Program will continue to accept applications through to 2028, offering industry multiple opportunities to apply for funding as projects progress and as requirements evolve.
The program complements other government initiatives aimed at growing Australia’s industrial base, such as the Advanced Strategic Capabilities Accelerator and the Defence Industry Development Strategy.
The government’s investment is part of its broader strategic commitment to delivering a whole-of-nation defence approach, ensuring Australian businesses are equipped to deliver leading-edge capabilities, generate economic benefits and reinforce the country’s security in a more contested Indo-Pacific region.
For more information on the Defence Industry Development Grants Program, including future funding rounds and eligibility requirements, visit here.
