As Australia continues to strengthen its manufacturing capabilities, several sectors are experiencing significant growth and investment. From renewable energy to defence, here are five Australian manufacturing sectors poised for major expansion in 2026.
1. Electric Vehicle Manufacturing
Australia is rapidly developing its electric vehicle manufacturing capability. Companies like SEA Electric are leading the charge, producing commercial electric trucks and buses from their Dandenong facility in Victoria. With government incentives for EV adoption and growing demand for sustainable transport, Australian EV manufacturers are positioned to capture significant market share.
The sector is attracting both domestic investment and international partnerships, with Australian innovation in battery technology and electric drivetrains gaining global recognition.
2. Battery and Energy Storage
Australia has the raw materials—lithium, nickel, cobalt—and now the manufacturing capability to become a global leader in battery production. Companies like Redflow Limited are pioneering zinc-bromine flow battery technology in Brisbane, offering grid-scale and residential energy storage solutions.
The push for renewable energy means demand for locally manufactured batteries is surging. Having domestic supply chains for critical energy infrastructure provides both economic benefits and energy security.
3. Pharmaceutical Manufacturing
The COVID-19 pandemic highlighted the risks of relying on overseas pharmaceutical supply chains. In response, Australia is investing heavily in domestic pharmaceutical manufacturing. Companies like Phebra in Sydney are producing essential injectable medicines and hospital pharmaceuticals to TGA standards.
Government support through the Modern Manufacturing Initiative is helping Australian pharmaceutical manufacturers expand capacity and reduce dependence on imports for critical medicines.
4. Defence Industry Manufacturing
With increased defence spending and a focus on self-reliance, Australian defence manufacturing is experiencing unprecedented growth. From naval shipbuilding programs to aerospace components and tactical equipment, Australian manufacturers are building sovereign capability.
The AUKUS agreement has further accelerated investment in advanced manufacturing, with opportunities for Australian companies to participate in nuclear submarine construction and related industries.
5. Green Building Materials
Sustainability requirements in construction are driving demand for Australian-made green building materials. Companies like CSR Bradford and BlueScope Steel are leading the way with innovative, environmentally-friendly products manufactured locally.
From recycled steel to sustainable insulation, Australian manufacturers are meeting the growing demand for materials that reduce the carbon footprint of buildings while maintaining high performance standards.
Supporting Australian Manufacturing
By choosing Australian-made products, consumers and businesses directly support these growing sectors. Every purchase from an Australian manufacturer helps create local jobs, strengthen supply chains, and build a more resilient economy.
Explore more Australian manufacturers in our business directory — with over 300 listings across 19 categories, discover the incredible diversity of Australian manufacturing.