DroneShield invests millions in R&D & manufacturing expansion
DroneShield has announced plans to invest AUD $13 million in a significant new research and development (R&D) and manufacturing facility in Sydney as part of its production expansion strategy.
Facility investment
The company stated that the investment represents an initial commitment spread over a five-year lease and fit-out of a new 3,000 square metre production site located in Alexandria. The facility will be more than three times the size of DroneShield's current production floor near central Sydney and is expected to be operational in December 2025. The existing production site will be converted into an additional 2,500 square metres of R&D and engineering space, bringing the total R&D area to 5,530 square metres.
The facility expansion aims to increase DroneShield's manufacturing capacity to USD $2.4 billion annually by the end of 2026, a significant increase from its current USD $500 million annual capacity. By mid-2026, the company expects its own annual production capacity to reach USD $900 million, with the remainder to be supported by contract manufacturing both within Australia and internationally.
Recent contracts and market growth
The announcement comes after DroneShield reported several contract wins, including a USD $61.6 million order from a European military customer. This was identified as the largest single contract in the company's history. Additionally, the company secured contracts worth USD $9.7 million in Latin America and USD $11.7 million for research and development with Five-Eyes partners.
DroneShield highlighted Europe as its fastest-growing export market, citing increasing demand for modern defence capabilities in the context of heightened global threats and ongoing military conflicts. The company plans to extend its manufacturing footprint internationally and is exploring the establishment of a European Centre of Excellence, including manufacturing and production facilities, to support domestic defence initiatives such as the EUR €800 billion ReArm Europe Plan / Readiness 2030.
Company's response to defence demand
"In response to rising threats and multiple wars taking place across the globe, Australia's allies are increasing investment in modern defence capabilities," said Oleg Vornik, CEO, DroneShield.
"We are stepping up to meet this demand by investing in state-of-the-art facilities here and abroad, and in sovereign Australian skills development to provide the most modern and effective counter-drone capabilities in the world. Our new facility in Alexandria will epitomise the value Australian engineering can bring to a changing geopolitical landscape."
According to the company, the expansion enables the development of advanced in-house production, testing, and warehousing capabilities. The majority of its supply chain is expected to remain based in Australia, significantly reducing the requirement for heavy machinery or similar capital expenditure.
Future capacity plans
Together with planned contract manufacturing in Australia, as well as future manufacturing projects in Europe and the United States, DroneShield expects the combined output from its facilities and partners to match the scale of its global sales pipeline, which is valued at approximately USD $2.34 billion and is described by the company as rapidly growing.
DroneShield provides artificial intelligence-enabled platforms for the detection and mitigation of drone and autonomous systems. Its customers include military, intelligence, government, law enforcement, and critical infrastructure organisations.
