Australian troops will have access to a new $2.5 billion short-range air defence capability based in South Australia.
Missiles will be mounted onto vehicles and are designed to destroy enemy aircraft, drones or missiles from beyond visual range.
The air defence missile system will include world-leading radar technology and an air defence system for protection against airborne threats at the facility's new home in Adelaide's north.
Defence Industry Minister Linda Reynolds says Australian companies will secure more than $1 billion of the total investment through acquiring and maintaining the new system.
"It will create opportunities for defence exports generating employment for at least 100 Australian workers over its projected life," she said.
Defence Minister Christopher Pyne said the capability would be based on the Raytheon/Kongsberg National Advanced Surface to Air Missile System (NASAMS) which was used by several countries including the United States.
"One of Australia's most innovative technologies will be used to further enhance the effectiveness of NASAMS and contribute to one of the world's best short-range ground-based air defence systems," Mr Pyne said.
Raytheon has also invested $50 million into the project.
The advanced radar will be designed and manufactured by Canberra-based company, CEA Technologies.
South Australia's Premier Steven Marshall said the project would create 500 construction and maintenance jobs along with export opportunities for the defence industry.
"This facility strengthens South Australia's position as a key strategic hub for Raytheon Australia, one of the largest defence companies in the Australian market," Premier Marshall said.
"It will accelerate growth in the defence sector and supports future Raytheon programs across maritime, aerospace, cyber and systems integration."
Australian Associated Press