Australia doles out grants for defence industry

The Australian government has awarded a further 40 grants to support Australian businesses and back Australian jobs. These latest grants, totalling over $17.3 million, will deliver priority defence capabilities, support local manufacturing and strengthen Australia’s sovereign defence industry. Awarded under the $170 million Defence Industry Development Grants program, these grants will fund projects that enhance Australia’s defence manufacturing capabilities, export competitiveness and technical skills development.  These additional grants build on the 58 grants announced in May 2025 and continue delivering on the Albanese Government’s commitment to grow Australia’s defence industrial base. The newly funded projects will support jobs and innovation right across the country and help businesses scale up and modernise manufacturing in areas critical to Australia’s sovereign defence capability. The projects include six that are funded by the Australian Submarine Agency at a total value of $3.6 million to uplift Australia’s industrial base and support the AUKUS nuclear-powered submarine program. The competitive DIDG program provides matching grants of up to 50 percent, and it is continuously open to receive applications from eligible defence suppliers until 2028. More information on the Defence Industry Development Grants program can be found at: Defence Industry Development Grants Program. Minister for Defence Industry Pat Conroy said: “We are backing Australian businesses and backing Australian workers to deliver the capabilities our Defence Force needs – now and into the future. From the west coast to the east coast, the Albanese Government is building a stronger and more resilient defence industry by investing in Australian innovation, skills and manufacturing. I look forward to visiting many of these businesses in the years to come and seeing their work up close and in action.” The latest grant recipients include: Sovereign Industrial Priorities Stream ANCA Engineering Solutions (Vic) will receive $1,000,000 to acquire state-of-the-art equipment for precision manufacturing, electromagnetic compatibility testing, and vibration analysis to manufacture critical systems including uncrewed aerial vehicle (UAV) launchers and Redback Infantry Fighting Vehicle suspension units. Griffin Marine Services (WA) will receive $1,000,000 to acquire fabrication and welding equipment, including robotic welding, laser cutter, pulse welding machine and computer numeric control (CNC) press brake, to support Ghost Shark serial production capability. HIFraser (NSW) will receive $1,000,000 to procure capital equipment to manufacture valves to supply defence maritime systems. KBE (NSW) will receive $1,000,000 to procure a multi-axis CNC milling machine, multi-axis CNC turning machine, coordinate measuring machine (CMM) and tooling equipment to enhance manufacturing efficiency and meet the increasing demand for Ghost Shark components. Ronson Gears (Vic) will receive $1,000,000 to procure next-generation cylindrical grinding and vertical lathe systems to manufacture highly specialised gear componentry for the defence sector, including the Evolved SeaSparrow Missile and Infantry Fighting Vehicle. Veem (WA) will receive $1,000,000 to acquire a multi-axis CNC machine capable of machining valves, propellers and other critical components required for nuclear-powered submarines (NPS) and other naval vessels. Veem (WA) will receive $1,000,000 to procure a 3D sand printer capable of printing moulds required for the casting of propellers, valves and other critical components for NPS, Ghost Shark and other naval vessels. Fleet Space Technologies (SA) will receive $999,457 to acquire advanced capital equipment for satellite manufacture, assembly, test, and inspection. Alfatron (Vic) will receive $987,000 to acquire next-generation automated printed circuit board (PCB) production capabilities to enhance the capacity and quality for manufacturing PCBs within Australia. Bale Defence Engineering Systems (NSW) will receive $928,160 to procure a fibre laser cutter, CNC brake press, hydraulic guillotine, and overhead gantry cranes to manufacture components for guided weapons programs. Aerobond Defence (SA) will receive $837,456 to acquire equipment and tooling for guided munition canister manufacture. Nupress Tools (NSW) will receive $715,370 to procure 5-axis machinery and automation components to establish an advanced manufacturing cell to enable fast and compliant production for guided weapons parts. Hargrave Industries (NSW) will receive $610,203 to procure an automated conformal coating machine for applying aerospace and defence grade protective coatings to PCB for use in extreme conditions across multiple defence platforms. Carbonicboats (NSW) will receive $585,049 to acquire capital advanced manufacturing, testing and quality control equipment to scale up the production of next-generation Intelligence, Surveillance and Reconnaissance platforms for autonomous systems. Baker & Provan (NSW) will receive $550,651 to procure a CNC lathe with milling capability to manufacture components for the Hunter Class Frigate program. Aurora Labs (WA) will receive $544,333 to procure two multi-5-axis CNC machining centres for high precision capabilities for the manufacture of turbines and 3D-printed components linked to guided weapons and autonomous systems. Berkeley Engineering Group (NSW) will receive $452,547 to procure a CNC multi-capability lathe turning machine and robotics to manufacture guided weapons components. Rosebank Engineering (Vic) will receive $359,130 to acquire capital equipment to establish a wire arc additive manufacturing capability, material property testing and analysis for conformance to United States Navy requirements. Halliday Engineering (NSW) will receive $318,077 to procure welding and precision engineering equipment to increase the production capacity and precision of components for naval and land systems. Bauer Engineering-Manufacturing (Vic) will receive $268,477 to procure a high-speed 3-axis CNC vertical machining centre to improve capability, efficiency, precision, control, and cost-effectiveness of manufacturing components critical to the continuous naval shipbuilding and Collins class submarine sustainment. Australian Aerospace Engineering (NSW) will receive $258,082 to acquire aircraft spray paint booth, non-destructive testing and composite repair equipment enabling local repair and overhaul of over 86 helicopter components for the ADF’s Black Hawk and Seahawk fleets. Thornton Tomasetti (WA) will receive $154,466 to acquire capital equipment to establish an underwater explosive test for testing and qualification of equipment to the highest shock levels specified for the AUKUS submarine and surface ships in the Royal Australian Navy. Marcel Pacific (WA) will receive $94,520 to acquire manufacturing equipment to upscale the production of autonomous underwater vehicles (AUV) that leverage advanced robotics, sensors, and AI to support AUV programs and sovereign capability in undersea technology. Engine Protection Equipment (WA) will receive $56,947 to acquire a purpose-built hydraulic hose manufacturing and testing cell for the production of high-pressure flexible hoses for land and sea systems. Exports stream Currawong Engineering Pty Ltd (Tas) will receive $250,000 to procure a 5-axis CNC milling machine to increase manufacturing capability of electronic speed controllers to meet rising demand from the aerial vehicle market. Hargo Engineering Pty Ltd (Vic) will receive $250,000 to acquire advanced CNC lathe and CMM machine to enhance the manufacturing capability of their coupling nuts and connector shells for the aerospace and defence sectors. Tectonica Pty Ltd (Vic) will receive $250,000 to procure equipment to enhance the production of the integrated soldier worn Bantam system to support export opportunities. Mack Valves Pty Ltd (Vic) will receive $113,044 to acquire an advanced CNC lathe to manufacture complex valve components in larger volumes to support export opportunities in the US. Rojone Pty Ltd (NSW) will receive $49,999 to achieve AS9100D certification to overcome existing export barriers to access defence markets in US and Europe for communication cables. Skilling stream Halliday Engineering (NSW) will receive $210,555 to upskill workforce in priority technical skillsets aligned with sovereign manufacturing. The International Centre for Complex Project Management (ACT) will receive $42,428 to deliver a complex project management training course for Australian defence businesses. A.W. Bell (Vic) will receive $36,692 to upskill key staff in defence project management, metrology and metallurgy for defence programs. Rubicon Associates (Vic) will receive $7,257 to upskill its workforce in the proficient use of marine engineering design software to support naval shipbuilding and sustainment programs. Security stream Silentium Defence Trading Pty Ltd (SA) will receive $75,332 to uplift physical security and data access controls to meet Defence security requirements. Sayfa Pty Ltd (Vic) will receive $70,451 to uplift physical security and enhance security governance to meet Defence security requirements. Indigenous Defence and Infrastructure Consortium Pty Ltd (NSW) will receive $67,142 to uplift security governance to meet Defence security requirements. Phasor Innovation Pty Ltd (Vic) will receive $65,289 to uplift cybersecurity controls to meet Defence security requirements. J3Seven Pty Ltd (Qld) will receive $39,057 to uplift cybersecurity controls to meet Defence security requirements. SOIO Pty Ltd (SA) will receive $35,501 to uplift cybersecurity controls to meet Defence security requirements. Supacat Pty Ltd (Vic) will receive $25,519 to purchase and install physical access controls and security cameras to meet Defence security requirements. For Editorial Inquiries Contact: Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Group Sales Director Simon Hadfield at [email protected]