About 60 new defence industry jobs will be created at Williamtown as a part of a decision to base Australia's new multibillion-dollar air and missile defence system in the Hunter.
It follows the federal government's selection of Lockheed Martin Australia as its strategic partner for the Joint Air Battle Management System (Air6500).
The system will support an enhanced, integrated and coordinated air and missile defence capability across the Australian Defence Force and national infrastructure.
It will provide greater situational awareness of advanced air and missile threats and increased interoperability with international partners.
"This puts the Hunter at the heart of Australia's defence industry," Defence Industry Minister and Shortland MP Pat Conroy, who foreshadowed the announcement earlier this month, said.
"Coming off the back of a $100 million aircraft coating facility announced for Williamtown, it is a vote of confidence in our region and its future role in building the defence of our nation."
All up, the government estimates the project is likely to generate up to 230 jobs, including for subcontractors, in high-tech areas including software development, systems engineering, project management and logistics.
About 150 jobs will be in South Australia, 60 in the Hunter region, with others in Brisbane and Canberra.
Lockheed Martin Australia and New Zealand chief executive Warren McDonald said the company had been dedicated to supporting the Australian Defence Force's vision to transform into a fully integrated and Integrated Air and Missile Defence capable force through AIR6500.
"To deliver on this key strategic national endeavour, we are leveraging our vast experience delivering battle-proven integrated air and missile defence systems and harnessing the full might of Australian industry to build a sovereign 21st century security capability trusted to defend Australia and its national interests now and, in the future," he said.
"This approach will ensure Australian small to medium enterprises have 'box seats' in the global supply chain. The integrated air and missile defence sovereign technologies being created in Australia today will be exported to the world in the future - unlocking a $83 billion export market for Australia's defence industry."
The project is one of two key air and missile defence capability projects to flow from the Defence Strategic Review.
The government is also accelerating the ADF's Medium-Range Ground-Based Air Defence capability, which will form part of a layered, integrated air missile defence capability.
Options are currently being developed with several companies for government consideration.
"The Albanese government is working at pace to ensure the ADF is equipped with modernised capabilities that will allow it to transition into a genuine integrated force optimised for national defence, as we implement the findings of the Defence Strategic Review," Deputy Prime Minister Richard Marles said.
"The new Joint Air Battle Management System, and the Medium-Range Ground-Based Air Defence System will contribute effective capabilities as part of an integrated ADF. These capabilities are essential in our pursuit of preserving and protecting our sovereignty and security, while also promoting stability in our region."
