Australia and the US are working on a deal to co-produce a stockpile of missiles and rockets.
Both governments are engaging in the project with hopes of tightening their respective defence ties.
The government has confirmed talks are underway and officials are hoping to initiate assembly by 2025.
Defence Industry Minister Pat Conry and Air Marshall Leon Phillips flew to the US to discuss the plans and visit a missile plant in Alabama.
It comes as an announcement was made for Australian steel to be used in the manufacturing of submarines, constructed as part of the AUKUS submarine deal.