Fyshwick-based CEA Technologies will build four new air defence radars, using its active electronically scanned array technology, as part of the $2.7 billion investment in Defence's new Joint Air Battle Management System.
The new sensors are able to detect aircraft and missile threats at greater ranges and with increased accuracy than current systems.
Minister for Defence Industry Pat Conroy said the Australian designed and built radars would provide a significant boost to air defence capability.
"The new sensors allow for real-time critical information to be received and affording greater warning, decision and response time," he said.
"As a critical component of the Joint Air Battle Management System, the radars will enhance situational awareness and interoperability across the joint force, and with our allies."
He said the selection of this home-grown radar technology illustrated the commitment to maximising Australian industrial participation within Defence capability acquisition and sustainment projects.
"The contract will directly contribute to growing the CEA Technologies workforce from 530 staff to over 800 in coming years," Mr Conroy said.
He described CEA Technologies as "a world-leading business in radar technology and a key defence industry partner in Australia", with its upgraded CEAfar and CEAmount radar technology currently installed on the Royal Australian Navy's Anzac class frigates. CEAmount is used to guide the frigate's Sea Sparrow missiles to target.
"The expansion of CEA Technologies into ground-based sensor applications using the same proven technologies demonstrates the strength of Australia's defence industry," he said.
Founded in 1983, CEA Technologies specialises in the design, development and manufacture of advanced radar systems.
In 2019, it won a Defence deal to partner with Raytheon Industries to provide the radar arrays and systems for the army's new LAND 19 Phase 7B short range (up to 30km) ground-based air defence.
