A3D Executes Agreement with Sovereign Propulsion Systems
| Stock | Aurora Labs Ltd (A3D.ASX) |
|---|---|
| Release Time | 14 Oct 2025, 9:56 a.m. |
| Price Sensitive | Yes |
Aurora Labs Executes Agreement with Australian UAS Developer
- Aurora Labs signs agreement with Sovereign Propulsion Systems (SPS) for aerial testing of Micro Gas Turbines
- SPS to support engine testing program by providing uncrewed aerial systems (UAS), integration expertise, and access to its dedicated flight test facility
- SPS invests in Aurora Labs and appointed as Distributor of Aurora Labs propulsion systems
Aurora Labs Limited ('A3D' or 'the Company') has announced the execution of a Joint Integration, Testing, Development and Distribution Agreement with Sovereign Propulsion Systems (SPS) for the testing and commercialisation of its novel turbine engines, designed to meet requirements for the defence sector. Under the agreement, SPS will manage and oversee a rigorous testing program of propulsion systems at its South Australian test facility, where SPS will undertake the integration of A3D's engines into SPS's UAS and third-party platforms, and perform detailed performance analysis, both on bench and in real-world conditions under flight. Funding of this test work will be provided in kind by SPS, whereby Aurora Labs will provide SPS with rights to act as an Aurora distributor of the propulsion systems to specified partner countries for a fixed 3-year term. SPS shall receive a commercial fee based on sales volume and shall be subject to performance milestones to be met during the term. It is anticipated that bench testing of the next-generation novel propulsion engine to validate key performance criteria such as power output, fuel consumption and endurance shall commence during the early part of 2026, followed by aerial testing on an SPS platform to gather data on altitude, performance, and mission capability.
Based on the agreement, Aurora Labs and Sovereign Propulsion Systems will work together to test and commercialise Aurora's novel turbine engines designed for the defence sector. This includes a rigorous testing program at SPS's South Australian test facility, integration of Aurora's engines into SPS's UAS and third-party platforms, and detailed performance analysis. The companies anticipate bench testing of the next-generation propulsion engine to commence in early 2026, followed by aerial testing on an SPS platform.