Next generation air, missile shield enters next phase

The Australian Defence Force is a step closer to getting a next generation air and missile defence system capable of detecting and stopping threats.

The Albanese government on Wednesday announced the next phase of the integrated air and missile defence capability which has been taken up by US defence giant Lockheed Martin under a $500 million contract

The system, which will be delivered under project Air6500, will provide greater situational awareness of advanced air and missile threats and increase interoperability with international partners.

The defence strategic review, released last year, revealed the vulnerability of Australia's northern military bases and deployed forces from air attacks.

The review stated an integrated air and missile defence system was a critical capability urgently needed by the ADF.

Hundreds of jobs are expected to be created and supported through the project, including a number of systems engineers and software coders.

Defence Industry Minister Pat Conroy said the next generation air missile defence system demonstrated the government's "unwavering commitment" to ADF capability.

"This is an investment in our national security but also an investment in a future made in Australia which will support local businesses and create hundreds of jobs and support many more," he said.

"The Albanese government is actively creating opportunities for Australian industry, through the entire supply chain of small-and-medium enterprises, as we deliver these critical defence capabilities."