Aurora Labs (ASX:A3D) Inks Strategic Testing and Distribution Deal with Sovereign Propulsion Systems
Aurora Labs (ASX:A3D), the Perth-based industrial tech firm known for its metal 3D printing and additive manufacturing capabilities, has signed a pivotal agreement with South Australian UAV developer Sovereign Propulsion Systems (SPS). The collaboration will see Aurora’s next-generation micro gas turbines tested in uncrewed aerial systems (UAS), including a new propulsion system developed in conjunction with the Australian Defence Force (ADF).
Announced on 14 October 2025, the agreement positions SPS as a key partner in Aurora’s push into the defence aerospace propulsion market, an area the company has been progressively targeting through its advanced additive manufacturing platform.
Under the deal, SPS will oversee the integration and flight testing of Aurora’s turbine engines at its dedicated test facility in South Australia. The program will validate core performance metrics - such as fuel efficiency, thrust output, and operational endurance - through both bench trials and in-flight deployment on SPS and third-party UAV platforms.
Australian-Made Tech for Australian Defence
The partnership is noteworthy not only for its technical ambition but also for its alignment with sovereign capability goals. SPS, a veteran-co-owned enterprise established in 2022, offers end-to-end design, manufacturing, and flight test services - all delivered entirely within Australia.
The agreement also includes a strategic investment component. SPS has participated in Aurora’s recent share placement and, as part of the arrangement, has been appointed a distributor of Aurora’s propulsion systems for selected partner countries for a fixed three-year term. The commercial fee attached to this distribution role will be determined by future sales volumes and performance milestones.
A formal joint venture may follow, with Aurora signalling that detailed commercial terms are expected to be finalised in the coming weeks.
Aurora Managing Director Peter Snowsill said the collaboration with SPS would accelerate the company's ambitions in the unmanned systems sector.
“This agreement provides Aurora with a clear and structured pathway to validate our propulsion systems under real-world conditions while accessing the extensive UAV integration expertise offered by SPS,” he said.
Testing Timetable and Technology Roadmap
Bench testing of the propulsion system is slated to commence in early 2026, with airborne trials to follow. These tests will form the basis for eventual commercial rollout and potential adoption within ADF programs or allied export markets.
Aurora’s engines, which are being developed with a strong emphasis on additive manufacturing efficiencies, are expected to offer cost-effective, scalable propulsion solutions for a variety of unmanned applications. While Aurora's roots lie in powder bed fusion and 3D printing hardware, its move into aerospace propulsion demonstrates the broader strategic potential of integrating advanced manufacturing with defence technology innovation.
The announcement comes at a time when Australia's defence sector is actively seeking sovereign solutions to reduce reliance on imported systems—particularly in areas like autonomous surveillance, logistics, and tactical UAS operations.
With this agreement, Aurora Labs adds both technical momentum and strategic credibility to its defence-facing portfolio, further embedding itself in one of the country's highest-priority industrial sectors.