The sale of the former Holden proving ground at Lang Lang, Victoria, has emerged as a strategic battleground where national security interests could override commercial considerations. With at least two interested buyers—Chinese automaker GWM and Australian defence technology firm Defendtex—the fate of the 877-hectare facility hinges on more than just market value.
GWM, which has been leasing the site for vehicle testing since March, has expressed interest in acquiring the property. The automaker, which hired former Holden engineer Rob Trubiani to adapt its models for Australian conditions, has been using the facility alongside Defendtex. However, the Australian Government retains the authority to intervene in the sale, particularly given the site’s current use for military technology testing.
Defendtex, a defence innovator recognised with multiple industry awards, has submitted a formal offer for the proving ground. The company’s involvement raises critical questions about the facility’s future role in Australia’s defence sector. While details of Defendtex’s testing activities remain undisclosed, the presence of a defence contractor on the site could influence the government’s stance on the sale.
National security concerns have already shaped similar transactions. In 2015, the 99-year lease of the Port of Darwin to a Chinese corporation sparked public and political backlash, leading to bipartisan commitments to reclaim the port during the 2025 federal election. This precedent underscores the sensitivity surrounding foreign ownership of strategic assets, particularly those tied to defence or critical infrastructure.
Under Australian law, the federal treasurer holds the power to approve or block significant foreign investments, with security and defence considerations playing a pivotal role. While Treasury has not commented on the Lang Lang sale, guidelines indicate that GWM, as a foreign entity, may be encouraged to notify the government of its intentions—especially given the site’s use by a defence contractor.
VinFast, the Vietnamese automaker that purchased the property in 2020, initially aimed to enter the Australian market but later reversed course, putting the facility up for sale. The current preference among VinFast’s representatives appears to favour another automaker, potentially securing jobs for the engineers currently employed at the site. However, the Australian Government may prioritise the site’s strategic value over commercial interests, particularly if Defendtex’s offer aligns more closely with defence needs.
As the bidding process unfolds, the Lang Lang proving ground stands at a crossroads. The outcome will not only determine the future of the facility but also set a precedent for how Australia balances foreign investment with national security in the defence sector.