By Darian Macey, July 7 2025
South Australia is entering a new era of strategic significance, with billions being invested in defence infrastructure, industrial capability, and sovereign skills development across the state.
By Darian Macey
Speaking at the ADM South Australian Defence Summit on 1 July 2025, Defence SA’s Chief Executive Matt Opie outlined the scale and momentum behind South Australia’s growing role in national defence.
“Our state’s defence infrastructure spend is now around $2 billion annually,” Opie said. “That’s about the same as the total national infrastructure spend managed by Defence’s Capital Facilities and Infrastructure branch in Canberra. It shows how central South Australia has become to the national pipeline.”
Expanding Defence Infrastructure
Much of this investment is focused around the Port Adelaide precinct, where the continuous naval shipbuilding program is transforming the Osborne shipyards. BAE is progressing with Hunter-class frigates to the south, while ASC continues Collins-class sustainment and prepares for the class’s Life-of-Type Extension program in early 2026. Plans are also firming for the new Nuclear-Powered Submarine Construction Yard, with early works budgeted at $2 billion and longer-term estimates in the $15–20 billion range.
Across the Le Fevre Peninsula, state and local governments are working together on a long-term master plan to support the AUKUS boom, addressing urban planning issues from traffic to kindergarten places. “We’re effectively doubling South Australia’s industrial infrastructure spend over the next decade,” said Opie, “and it’ll be everything from steel and concrete to separated roads and bridges”.
RAAF Base Edinburgh also remains a key focus. In addition to long-established tenants such as DSTG and BAE Systems, new developments include a $25 million upgrade by BAE and the construction of the Deep Maintenance and Modification Facility for Boeing, a four-bay 737 hangar being delivered by BESIX Watpac. Once complete, the base boundary will shift to allow taxiway access directly into the facility.
Industrial Confidence Driving SME and International Investment
While the big defence primes are expanding, South Australia is also seeing strong growth in small-to-medium enterprise (SME) participation. Defence SA’s strategy of providing early support through initiatives like the Defence and Space Landing Pad at Lot Fourteen is paying dividends.
“Kongsberg started with one person in the landing pad five years ago,” said Opie. “This year they opened a $50 million manufacturing facility at Mawson Lakes. That’s proof positive the model works.”
Other examples include:
- Babcock Australasia, which has already announced an expansion to its new Woodville North facility;
- SAAB Australia, which has tripled its Mawson Lakes footprint;
- Redarc, investing millions in its new defence and space manufacturing facility in the southern suburbs;
- BAE Systems, which is adding $25 million in infrastructure at Edinburgh Parks.
According to Opie, this trend reflects growing confidence in the longevity of major programs: “It makes the Treasurer happy when companies are investing their own money rather than coming to us for support. They see the long-term demand and are backing themselves.”
Support for Testing and Trials
Opie also highlighted South Australia’s growing Testing and Evaluation (T&E) infrastructure. The state is working to provide autonomous and shared test ranges for SMEs to trial systems ahead of engaging with Defence. The Koonibba Test Range and Whalers Way, both operated by Southern Launch, are part of this push. Whalers Way, a polar orbit launch site with environmental approval for 42 launches annually, is now regarded as a globally significant asset free of many of the political or geographic limitations seen elsewhere.
Conclusion
South Australia’s transformation into a sovereign defence stronghold is well underway, backed by state leadership, national programs, and industry buy-in. As Opie summarised, “Believe the hype. The money’s there, the programs are real, and the work is already happening.”
For SMEs and major contractors alike, South Australia is fast becoming one of the most active and opportunity-rich regions in Australia’s defence landscape.
Author: Darian Macey
Darian is a former Engineering Officer with the RAE with tertiary qualifications in Engineering and Project Management. He is a leading practitioner within Australia's NSI sector with previous employment in Government, project management and building contractor organisations.
