• $450,000 Phase 2 contract awarded for prototype manufacture and testing of next-generation high-thrust, fuel-efficient propulsion system
• Builds on successful completion of Phase 1 design and engineering program
• Novel high-efficiency propulsion system to complement A3D's existing micro gas turbines

Aurora Labs Ltd (ASX: A3D) has been awarded a $450,000 Phase 2 contract with the Australian Department of Defence (ADF) for the prototype manufacture and testing of a new generation, high-thrust and fuel-efficient novel propulsion system. This award builds directly on the successful completion of Phase 1 detailed design and engineering, where Aurora has leveraged its proprietary metal 3D printing technology to create a system specifically designed for excellent fuel efficiency, high speed and varied mission profiles. The commencement of Phase 2 moves the project to furthering its prototype manufacture, with engineering and printing of critical components already underway. Bench testing will begin in the first half of 2026. This milestone validates the strength of Aurora Labs' propulsion engineering capability and confirms the company's role as a sovereign leader in small engine propulsion for Defence. The new propulsion system will complement Aurora's existing 200N and 400N class micro gas turbines, placing the company in a unique position to design, prototype, and manufacture high-integrity propulsion systems for the rapidly expanding unmanned aerial systems (UAS) markets. Discussions with UAS developers are underway to support the test program with aerial platforms, logistical resources, and access to test ranges.

The new high-thrust, fuel-efficient propulsion system will advance Aurora Labs' position in the rapidly expanding unmanned aerial systems (UAS) markets, both domestically and internationally, as the company looks to capture downstream commercialisation opportunities.