ASX-listed DroneShield is spending $13 million on R&D in Adelaide

ASX-listed defence technology company DroneShield will spend $13 million developing a new R&D facility in Adelaide, South Australia.

The investment covers three years of operational and capital expenditure.

DroneShield sells protection against threats such as drones and autonomous systems as well as electronic warfare solutions and off-the-shelf counter-measures for terrestrial, maritime or airborne drone attacks, with artificial intelligence (AI) an increasing part of the solution.

Shares in the company (ASX:DRO) have been on a tear over the last six months, up more than 600% to climb above $6, amid plans for US and European manufacturing facilities and two new contracts, announced last month and worth $7.9 million, with the US Department of Defense. R&D expansion in the US is also on the cards.

The company says annual production capacity will increase from A$500 million to $2.4 billion by end of 2026.

Meanwhile former Lockheed Martin Australia defence engineering leader Jeff Wojtiuk has been recruited to run the Adelaide facility as the business hits 400 employees globally, quadrupling the headcount in the last two years.Around two-thirds of the workforce are software and hardware engineers.

The South Australian R&D site will initially create around 20 high-skilled engineering roles,  focused on radiofrequency (RF) electronics, EW, and systems integration.

The scaleup, originally founded in 2014 in the US by two former US military servicemen, Dr Brian Hearing and Dr John Franklin, is headquartered in Sydney as well as having engineering operations there.

CEO Oleg Vornik said South Australia is recognised as a national leader in defence and space industries, with Adelaide home to a highly skilled and experienced
workforce.

Chief Product and Technology Officer, Angus Bean, said the Adelaide R&D facility in Adelaide is a significant step in ensuring their technology roadmap is being supported by the best engineering minds nationally.

“Our new facility is critical to accelerating the development of our next-generation counter-drone and EW technologies, while expanding our engineering footprint and supporting critical project development for global customers,” he said.

In a reminder of how fickle public market sentiment can be, DroneShield shares fell 3.66% on Tuesday following the news.