Australia updates defence industry strategy

The Ghost Shark extra-large autonomous underwater vehicle has been added to Australia's list of priority defence export capabilities under the 2026 Defence Industry Development Strategy. (Commonwealth of Australia)

Australia has released its 2026 Defence Industry Development Strategy (DIDS), outlining measures related to workforce development, export support, industrial grants, and procurement reform.

Released on 2 July, the DIDS outlines measures intended to support Australia's domestic defence industry and contribute to capability priorities identified in the 2024 and 2026 National Defence Strategies.

The updated strategy follows the DIDS released in 2024, which established a framework for aligning defence industrial policy with capability priorities identified in the 2023 Defence Strategic Review (DSR).

Defence Industry Minister Pat Conroy said the updated DIDS is intended to strengthen Australia's sovereign defence industrial base and improve self-reliance.

Measures announced in the updated strategy include targets for major defence contractors to expand the defence workforce with a focus on apprenticeships, more than AUD17 million (USD11.8 million) to extend the Defence Industry Internship Program, and almost AUD30 million to expand the Schools Pathway Program to encourage participation in science, technology, engineering, and mathematics disciplines.

The Australian Department of Defence (DoD) also announced an additional AUD80 million in Defence Industry Development Grants and reforms to Australia's USD3 billion Defence Export Facility, which it said will make it easier for defence companies to access export financing.

In addition, the Ghost Shark extra-large autonomous underwater vehicle, produced by Anduril Australia, has been added to the Australian Defence Strategic Sales Office's list of priority export capabilities.

The updated DIDS also includes measures intended to accelerate defence procurement through the introduction of the ‘Continuous Capability Development and Delivery' and ‘Minimum Viable Contracting' approaches.