How Aurora Labs’ $0.54M Grant Could Revolutionise Defence Manufacturing
Aurora Labs has been awarded a $544,333 Defence Industry Development Grant to expand its production capabilities for gas turbine propulsion systems, reinforcing Australia’s sovereign defence manufacturing.
- Awarded $544,333 Defence Industry Development Grant
- Funding supports acquisition of advanced manufacturing equipment
- Focus on scaling production of gas turbine propulsion systems for UAVs
- Enhances vertical integration and reduces foreign supply dependence
- Completion deadline set for March 2026 with co-investment requirement
Grant Boosts Sovereign Manufacturing Ambitions
Aurora Labs Limited (ASX – A3D), a pioneer in industrial 3D metal printing and propulsion technologies, has secured a $544,333 grant from the Australian Government’s Defence Industry Development Grants Program. This funding, awarded under the Sovereign Industrial Priorities Stream, aims to strengthen Australia’s domestic defence manufacturing capabilities by supporting the acquisition of critical production equipment.
The grant is structured on a 50/50 co-investment basis, with Aurora actively seeking third-party lenders to provide matching funds. The investment will enable Aurora to scale up production of its proprietary micro gas turbine propulsion systems, which are designed primarily for unmanned aerial vehicles (UAVs) and other autonomous defence platforms.
Vertical Integration and Supply Chain Resilience
Central to Aurora’s strategy is the vertical integration of its manufacturing process at its Canning Vale facility in Western Australia. The grant will fund the purchase of multi-axis CNC machining centres and HVAC temperature control systems, essential for high-precision manufacturing and thermal management. This integration, from additive manufacturing of complex parts to post-processing and final assembly, aims to reduce reliance on foreign suppliers and enhance national defence resilience.
CEO Rebekah Letheby emphasised the broader significance of the grant, stating it represents an investment in sovereign capability. By localising production, Aurora is positioning itself as a key contributor to Australia’s strategic defence autonomy, particularly in the aerospace and maritime sectors.
Looking Ahead – Meeting Defence Demand
The funding aligns with anticipated domestic defence contracts, reflecting growing demand for advanced propulsion systems in defence applications. Aurora plans to complete all grant-supported activities by March 28, 2026, adhering to the Department of Defence’s delivery framework. The company is also investing in workforce training to ensure safe and precise operation of the new equipment, underscoring its commitment to quality and capability development.
This development marks a significant step for Aurora Labs as it prepares to meet increasing orders and solidify its role within Australia’s sovereign defence manufacturing landscape.
Bottom Line?
Aurora’s grant-backed expansion could redefine Australia’s defence manufacturing landscape; if matching funds and contracts align.
Questions in the middle?
- Will Aurora secure the necessary matching funds from third-party lenders on favourable terms?
- How soon will Aurora convert this expanded capacity into confirmed defence contracts?
- What impact will vertical integration have on Aurora’s production costs and delivery timelines?
