Orbital secures $3m engine development contract from Anduril

Orbital Corporation has signed a new engine development contract worth $3m with rapidly growing defence company Anduril Industries.

Under the contract, the company will develop a new and larger engine configuration for Anduril’s future propulsion requirements with the first prototype engines to be supplied for ground testing by January 2024.

This follows the two companies reaching a memorandum of understanding back in May 2022 to work on concepts, products and technical solutions in the uncrewed domain.

Should Orbital Corporation (ASX:OEC) meet the deadline and the technical requirements for the first prototype engines, the two companies will engage in further contract negotiations to take the prototype engines into flight and production ready propulsion systems.

Anduril has special expertise in artificial intelligence (AI) and is also a leader in robotics, advanced sensors, secure networking, aerospace, virtual reality, aircraft modelling and simulation.

Drones benefitting from Defence Strategic review

The recommendations made in the Australian Defence Strategic Review highlights six priority areas that are expected to shape Defence policy and national security posture for decades to come.

One key area is in robotics and drone technology which, as proven by Russia’s invasion of Ukraine in February 2022, is poised to play a crucial role in surveillance, reconnaissance and combat missions.

This is likely to be positive news for Orbital given its focus on developing and manufacturing advanced spark ignition propulsion systems for drones.

This article was developed in collaboration with Orbital Corporation, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.