A close partnership with industry is central to delivering capability through Pillar II. AUKUS (Australia, the United Kingdom and the United States) partners share a vision for deeper collaboration across the trilateral defence industrial base, working together to solve operational problems and deliver capabilities as swiftly as possible. AUKUS partners seek to improve military responses to shared operational problems by using the best technology to collaborate and deliver advanced capabilities at speed and scale. 

Under the National Defence Strategy, the Australian Government has delivered reforms to better integrate Australian companies into global supply chains, and enable collaboration and innovation in cutting-edge defence technologies. By removing barriers to trade and collaboration, the export licence-free environment between AUKUS nations has reduced costs to businesses and unlocked hundreds of millions of dollars’ worth of defence trade.

Since 1 September 2024, the industry, higher education and research sectors in Australia, the United Kingdom and the United States have been able to export and supply most military and dual-use goods, technologies and services among and between AUKUS partners without requiring a permit or licence. 

Internationally, AUKUS partners also maintain a strong trilateral presence at major trade shows, which facilitates direct engagement between industry and senior officials from the AUKUS partner nations.

The trilateral AUKUS Advanced Capabilities Industry Forum, established in 2024, brings together government and industry representatives to inform policy, technical and commercial frameworks to support Pillar II. It is focused on addressing barriers to defence collaboration.

AUKUS Innovation Challenge Series

The AUKUS Innovation Challenge Series is a collaborative initiative engaging industry and research institutions across the 3 nations to harness commercial technologies for advanced capability development. It is conducted by AUKUS defence innovation organisations:

• Australia – the Advanced Strategic Capabilities Accelerator
• United Kingdom – UK Defence Innovation
• United States – Defense Innovation Unit.

It enables governments, industry and academia to co-design solutions to joint operational problems, with each challenge addressing a contemporary technical gap that the 3 defence forces face.

The 2024 AUKUS Innovation Challenge focused on electronic warfare and Defence’s ability to leverage electromagnetic spectrum technologies and capabilities. This Challenge saw winners selected from all 3 AUKUS partners.

The 2025 Innovation Challenge focused on undersea communications and control of autonomous systems. Defence has selected BAE Systems Australia Limited, L3Harris Integrated Mission Systems Australia Pty Ltd, and Mission Systems Pty Ltd as the Australian winners of this Challenge. The 3 successful companies have received 12-month prototype development contracts, and will demonstrate their technologies by the end of 2026.

Industry briefing

On 19 June 2026, Defence hosted an industry briefing webinar on AUKUS Pillar II. The webinar recording is available, along with the transcript.

AUKUS Pillar II (Advanced Capabilities) webinar transcript (PDF, 118.86 KB)