The Australian government has awarded more than $11.6 million to 44 domestic companies as Canberra continues to invest in local manufacturing capacity tied to priority defense and AUKUS-related programs.
How Much Funding Was Awarded Under the DIDG?
The funding was distributed through the Defence Industry Development Grants program, which supports Australian defense suppliers across four streams: sovereign industrial priorities, exports, skilling and security, the Australian government said Friday. The latest round follows grant awards announced in May 2025 and brings total program allocations to more than $34.9 million, part of a broader $116.3 million commitment running through 2028.
What Defense Priorities Does the DIDG Support?
According to the Australian defense department, the grants will support submarines, aerospace, guided weapons, explosive ordnance and emerging technologies. Eight of the funded projects, totaling $2 million, were awarded through the Australian Submarine Agency in line with the AUKUS nuclear-powered submarine program.
In addition to scaling production capacity, recipients will use the funding to modernize facilities and strengthen supply chain resilience. Projects include investments in precision machining, composites manufacturing, electronics testing, underwater sustainment systems and autonomous maritime platforms, as well as workforce training and security upgrades required to meet defense standards.
“These new grants will help local companies scale up, modernise and grow, ensuring our nation has the industrial strength and skills base to meet future challenges,” said Pat Conroy, minister for defense industry. “Every one of these projects contributes to a stronger, more resilient and sovereign defence industry – creating jobs, driving innovation, and building a future made in Australia.”
How Does the DIDG Structure Work?
The DIDG program provides matching funding of up to 50 percent for eligible projects. Applications remain open year-round until 2028.
See the list of awardees here:
Sovereign Industrial Priorities Stream
- Australian Textile Group
- Catten Industries
- DVR Engineering
- Franmarine
- GPC Electronics
- Prestige Precision Tools
- Van Munster Boats
- Rivierra
- Rosebank Engineering
- Levett Engineering
- Stella Engineering
- Airspeed
- Benelec
- Alsop Engineering
- Advanced Navigation
- Australian Steel
- MCHND
- Craig International Ballistic
- Applied Measurements Australia
- Global Welding Technologies Group
- Jack Thompson Engineering
- Ballistic and Mechanical Testing
Exports Stream
- Cowan Manufacturing
- HTA
- Levett Engineering
- Nu Metric Manufacturing
- Thrust Maritime
- Defendtex Research Labs
Skilling Stream
- Quality Maritime Surveyors
- Eptec Marine
- Rosebank Engineering
- Ocius Technology
- K39 Consulting
- Asset Reliability Inspections
- International Centre for Complex Project Management
- Fusion Engineering Consulting Services
- C4I
- JVAT Solutions
Security Stream
- Shoal Group
- Security Stream
- Luminact
- Secure State Consultants
- Stahl Metal
- Danger Solutions
- Falcon