Australia’s defence technology sector is undergoing a remarkable transformation, with homegrown innovators pushing the boundaries of drone technology and attracting global attention. Companies like Sydney-based DroneShield (ASX:DRO) and Melbourne-based Freespace Operations are at the forefront of this wave, demonstrating how Australian engineering is meeting the surge in demand for modern defence systems.
DroneShield, led by CEO Oleg Vornik, has established itself as a global leader in counter-drone and electronic warfare systems. Its technology detects, identifies, and neutralises drone threats, earning contracts from militaries and governments worldwide, including those deployed on the frontlines in Ukraine. The company’s share price has surged over 780% in the past year, propelling it into the ASX 200. Vornik has positioned DRO as a symbol of Australia’s sovereign defence potential, emphasising agility, deep technical expertise, and global competitiveness. “We don’t have ambition to become the next Lockheed Martin,” Vornik says. “But there’s so much more to be done in counter-drone technology.”
While DroneShield focuses on countering drone threats, Freespace Operations is redefining what drones can achieve. Founded in 2019 by engineers Ken King and Leonard Hall, Freespace has achieved a world-first breakthrough with Cooperative Lift, allowing multiple drones to work together to carry shared payloads of up to 100kg. This innovation, long considered the ‘holy grail’ of drone engineering, has already secured Freespace a multimillion-dollar defence contract in the Indo-Pacific region. Built on the company’s proven Callisto 50 heavy-lift platform, Cooperative Lift enables drones to complete missions previously limited to helicopters, such as resupply, ship-to-ship delivery, and industrial transport, at a fraction of the cost and risk.
Freespace’s technology was recently tested during Exercise Talisman Sabre 2025, where its drones demonstrated fully automated ship-to-ship and ship-to-shore resupply. “Universities and drone manufacturers have been trying for years to crack Cooperative Lift,” said Freespace co-founder Ken King. “Our breakthrough proves it can be done safely, reliably and at scale. It opens up a whole new range of missions that can be handled by drones rather than crewed aircraft.”
Freespace’s success is particularly notable given its bootstrapped, profitable status in a sector often dominated by venture capital. In just five years, the company has delivered 29 Australian government and defence contracts worth over $9 million, alongside commercial projects for utilities and infrastructure providers. The breakthrough builds on Freespace’s Ship Ops technology, which allows drones to interact with moving vessels via remote beacons. Together, Ship Ops and Cooperative Lift represent a step-change in logistics, not only for militaries but also for industries such as mining, energy, and disaster relief.
Leonard Hall, Freespace’s co-founder and chief technology officer, highlighted the complexity of achieving Cooperative Lift. “It might sound intuitive to just add another drone, but the variables are enormous—from the movement of the load to changing wind conditions,” Hall said. “We could only achieve it because the Callisto 50 is such a proven and reliable platform to begin with.”
This advance comes as Australia seeks to develop sovereign drone capabilities amid shifting strategic priorities in the Indo-Pacific. Under AUKUS and the National Reconstruction Fund, unmanned systems are increasingly seen as critical to both defence and economic resilience. The success of companies like DroneShield and Freespace Operations underscores Australia’s growing reputation as a hub for defence technology innovation, poised to shape the future of global security and logistics.