The Albanese Government is investing $126.9 million to establish sovereign solid rocket motor manufacturing in Australia, marking a major step towards strengthening the nation’s defence industrial base and reducing reliance on overseas supply chains.
Defence Industry Minister Pat Conroy said the investment would improve Australia’s self-reliance and operational readiness, describing the DRACO test as evidence of rapidly advancing national expertise in missile technology and energetics.
Solid rocket motors, which provide the propulsion for most guided weapons systems, are in high global demand and are considered a critical capability for modern military forces. Under the plan, Australia will begin producing rocket motors for the Guided Multiple Launch Rocket System (GMLRS) at the Government-owned Mulwala munitions facility in New South Wales by 2030.
US defence company Northrop Grumman Australia has been selected as the preferred industry partner to help establish the domestic production capability, leveraging recently upgraded infrastructure at Mulwala to fast-track manufacturing.
A larger Rocket Motor Manufacturing Complex is also planned to be operational from 2033, designed to enable high-volume production of multiple types of solid rocket motors for future missile systems.
Alongside Northrop Grumman, Defence will work with Australian and international companies including DefendTex, Black Sky Industries and Anduril Australia to explore innovative manufacturing techniques, with scope for additional local suppliers to be involved as the program expands.
The Government says the initiative will strengthen Australia’s sovereign defence supply chains, create highly skilled jobs, and open opportunities for local small and medium enterprises to participate in global defence markets.
The announcement follows a recent milestone achieved by the Defence Science and Technology Group, which successfully conducted the first static firing of the Australian-developed DRACO solid rocket motor at Woomera in February, signalling progress in domestic missile propulsion research.
Conroy added that the program would ensure the Australian Defence Force has more reliable and resilient access to critical capabilities needed to defend Australia and its regional interests, while also strengthening long-term industrial capacity.
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