VEEM Wins $2M Grants for 3D Printing and CNC Machines in Defence Expansion
VEEM Limited has been awarded $2 million in government grants to enhance its manufacturing capabilities for critical naval components, supporting Australia's nuclear submarine and defence programs.
- Two $1 million grants awarded under Defence Industry Development Grants Program
- Funding to acquire 3D sand printer and multi-axis CNC machine
- Equipment to support production of components for nuclear submarines and naval vessels
- Facility expansion in Western Australia planned for equipment installation by end of 2025
- Collaboration underway with HII to join US submarine industrial base
Government Grants Propel VEEM's Defence Manufacturing
VEEM Limited (ASX: VEE), a Perth-based marine propulsion and stabilization technology company, has secured two significant grants totaling $2 million from the Australian Federal Government’s Defence Industry Development Grants Program. These grants, awarded under the Sovereign Industry Priorities Stream, will fund half of the costs for two advanced manufacturing projects aimed at bolstering Australia's sovereign defence capabilities.
The first grant of $1 million will facilitate the purchase and installation of a 3D sand printer. This cutting-edge equipment will enable VEEM to produce moulds essential for casting propellers, valves, and other critical components used in Nuclear-Powered Submarines (NPS), Unmanned Underwater Vehicles, and various naval vessels. The second grant, also $1 million, will support the acquisition of a multi-axis CNC machine designed to machine these vital components with precision.
Strategic Facility Expansion and Industry Collaboration
VEEM is currently in the design phase of expanding its manufacturing facilities in Western Australia, with the new equipment slated for installation in the second half of the 2026 financial year, following the completion of the extension expected by December 2025. This expansion not only increases VEEM’s production capacity but also aligns with broader national efforts to develop sovereign manufacturing capabilities in defence.
Beyond domestic growth, VEEM is actively collaborating with Huntington Ingalls Industries (HII) through the Australian Submarine Supplier Qualification (AUSSQ) pilot program. This partnership aims to integrate VEEM into the United States submarine industrial base, potentially opening avenues for international defence contracts and technology exchange.
Positioning for AUKUS and Future Naval Programs
Managing Director Mark Miocevich expressed pride in contributing to Australia's defence sector, highlighting the grants as a catalyst for enhancing VEEM’s manufacturing capabilities specifically for the Nuclear-Powered Submarine program. He emphasized the company’s anticipation of increased local manufacturing opportunities arising from the AUKUS security partnership and other naval shipbuilding initiatives.
VEEM’s investment in advanced manufacturing technology and facility upgrades positions it well to meet the stringent demands of defence contracts, while supporting Australia’s strategic goal of building sovereign industrial capacity in critical defence sectors.
Bottom Line?
VEEM’s government-backed expansion signals a strategic leap in Australia’s naval manufacturing capabilities, with eyes on both domestic and allied defence markets.
Questions in the middle?
- How will VEEM’s new equipment impact its production timelines and contract delivery?
- What are the prospects for VEEM securing further contracts under AUKUS and allied defence programs?
- How might integration into the US submarine industrial base influence VEEM’s growth and technology development?
