Canberra-based XTEK has signed an agreement with the Centre for Defence Industry Capability (CDIC) for a $1 million Sovereign Industrial Capability Priority (SICP) grant.
The company says it will use the money to build a production facility, including machinery and line equipment, for its XTclave composite curing and consolidation technology.
The XTclave technology uses high isostatic pressure and high temperature to make lighter and stronger composites than other autoclave systems.
In a statement released to the ASX, the company said that the award recognises the uniqueness of their technology.
"On the back of recent XTEK contracts with the US DoD, foreign customer orders and domestic development contracts, the award of the SICP grant represents validation and recognition from the Australian Department of Defence of XTEK’s unique global capabilities in producing ballistic armour products and the importance of establishing the XTclave as a sovereign industry capability," the statement said.
“We are pleased to be a recipient of the SICP, as it represents validation by the Australian Department of Defence of the advanced capabilities of our XTclaveTM technology for producing ballistic protection products," Philippe Odouard, Managing Director of XTEK added.
"The funding supports the execution of our broader strategy to commercialise our state-of-the-art technology by enhancing our production and testing capability for our proprietary ballistic helmets and armour plates.”
Defence last year placed an order for $42,000 worth of body armour from XTEK, which was sent to Diggerworks.