Australian defence manufacturers have received $17.3 million in grants through the latest round of the Defence Industry Development Grants Program to build sovereign industrial capabilities.
The grants will help 40 small to medium-sized enterprises modernise and scale their manufacturing operations in areas critical to Australia’s sovereign defence capability by matching project costs.
The latest grants under the $170 million program, which runs until 2028, build on the 58 projects announced in May 2025.
Seven companies were awarded the maximum $1 million grant under the Sovereign Industrial Priorities Stream, namely ANCA, Griffin Marine Services, HIFraser, KBE, Ronson Gears and Veem (x2). The full list can be found here.
The funded projects span a range of capital equipment upgrades, including advanced CNC machining, fabrication and welding systems, and precision manufacturing capabilities tailored to defence contracts.
Six projects, worth a total value of $3.6 million, are funded by the Australian Submarine Agency to uplift Australia’s industrial base and support the AUKUS nuclear-powered submarine program.
NSW companies topped the list for total funding awarded, receiving more than $6.7 million, followed by Victorian and Western Australian firms, which secured $3.3 million and $2.9 million, respectively.
Minister for Defence Industry Pat Conroy said the government is backing local innovation and Australian workers to ensure the nation is prepared to meet current and future defence challenges.
“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,” he said.
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