New Zealand’s Defence Minister Judith Collins has set an ambitious course for the nation’s defence industry, calling for the development of lethal weapons for international export and deeper collaboration between the military and tech sector. The newly announced Defence Industry Strategy, unveiled on Friday, aims to bolster local defence businesses and encourage tech companies to venture into military technology—a move that could reshape New Zealand’s strategic and economic landscape.
Collins emphasised that the strategy is not just about strengthening the country’s military but also about fostering a thriving defence technology sector. “Defence is a great way through for that, and if New Zealand Defence Force can help them to do that, that’s really important because it’s harder for our New Zealand Defence tech businesses to be able to sell into overseas markets like Australia or the UK if they don’t have a New Zealand Defence Force brand on them as well,” she said.
The strategy aligns with the Defence Capability Plan, which outlines $12 billion in defence spending over the next four years, lifting New Zealand’s defence expenditure to more than 2 percent of GDP within the next eight years. Collins stressed that lethal weapons are essential for deterrence, arguing that credible defence capabilities are necessary to ensure national security. “Nobody’s going to be deterred by a puppet, are they? They’re going to be deterred by the thought that something bad could happen to them—that’s how deterrence works.”
The Defence Force is actively seeking greater collaboration with suppliers to accelerate capability development and ensure resilience in the face of global tensions. With around 800 suppliers already in the industrial base, the new strategy aims to streamline partnerships and address procurement challenges, such as tender documentation and risk allocation. Collins highlighted that multinational suppliers already operating in New Zealand often subcontract work to local businesses, creating opportunities for domestic firms to integrate into the defence supply chain.
A significant component of the strategy is the establishment of a $100 million to $300 million ‘Technology Accelerator,’ designed to foster innovation and export potential. This initiative will allow the New Zealand Defence Force (NZDF) to partner with the country’s advanced technology sector, developing technologies that can be used domestically and exported internationally. Collins noted that many defence technologies have dual-use applications, benefiting sectors such as agriculture and beyond.
The strategy also includes a commitment to deeper integration with Australia’s defence industry, ensuring that New Zealand’s defence capabilities remain aligned with regional partners. Collins underscored the importance of resilience in supply chains, citing the lessons from Ukraine, where agility and innovation played a crucial role in national defence. “You need good friends, you need great intelligence—which we have—and you need to make sure we maintain and contribute to it. But you’ve got to have the high tech, and you’ve got to give your people hope because with that they will be resilient.”
Tauranga-based drone manufacturer SYOS Aerospace, which already has a research and development contract with the Defence Force, welcomed the strategy. Chief Executive Sam Vye said the initiative would strengthen New Zealand’s defence technology ecosystem, supporting both national security and export opportunities. “The Technology Accelerator is a fantastic initiative for New Zealand industry that will help more companies bring advanced tech to defence faster,” he said. Vye also highlighted the cost advantages of uncrewed vehicles over traditional crewed systems, noting that robotics, AI, and swarming capabilities represent a significant leap in defence technology.
As New Zealand navigates an increasingly uncertain global landscape, the Defence Industry Strategy positions the country to not only enhance its military readiness but also to emerge as a key player in the global defence technology market. By fostering innovation, strengthening supply chains, and deepening international partnerships, New Zealand is laying the groundwork for a more secure and economically robust future.