Australia has issued a formal call for private capital partners to help manage a new potential $500 million co-investment vehicle aimed at strengthening the nation’s sovereign defense industry.
What Capabilities Is Australia Targeting?
The Australian government said Wednesday the request for expressions of interest on AusTender seeks companies to manage joint investments to boost its sovereign defense capabilities and export potential. The initiative targets advanced and dual-use technologies, including cyber, artificial intelligence, autonomy, electronic warfare, quantum and undersea systems, to fast-track innovation, strengthen supply chains, and enhance global competitiveness.
“Joint investment between the government and private sector has enormous potential to further unlock Australian jobs and innovation,” said Minister for Defence Industry, Pat Conroy.
How Will the Co-Investment Model Work?
Under the plan, the government may invest up to $500 million alongside private partners, with terms developed jointly and subject to further review. The Department of Defence will oversee selections and work with firms to finalize proposals before approval.
“In developing potential options for co-investment, the government is looking for ways to catalyse growth of Australia’s innovation ecosystem, sovereign industry capability and exports potential, all while putting money back into Australian pockets,” said Conroy.
Other Efforts to Strengthen Australia’s Defense Industry
The proposed co-investment vehicle builds on efforts to strengthen Australia’s defense industry and AUKUS capabilities. In January, the government awarded more than $11.6 million to 44 companies under the Defence Industry Development Grants program, while AUKUS export reforms have enabled over $25 million in license-free military and dual-use exports to the U.S. and UK.