Insider Brief:
- Australian quantum companies are moving from lab research to deployed products, delivering measurable gains across AI, sensing, navigation, and secure infrastructure, supported by strong university spinouts and government co-investment.
- A diversified ecosystem of 40+ companies spans quantum processors, software, sensors, and timing systems, with several already working with global customers and defense partners.
- Australia aligns its quantum strategy closely with the U.S. and U.K. through AUKUS, easing collaboration, export controls, and joint development across defense, space, and critical infrastructure.
- Long-term public investment, coordinated national policy, and a dense research base underpin Australia’s push to scale quantum technology into globally competitive, export-ready industries.
On the outskirts of Sydney, in a lab etched with atomic precision, Australian engineers are building the quantum chips that underpin the industry and technology of tomorrow. Backed by government equity and born from one of the country’s top universities, these chips are driving value and advantage with companies like Telstra, reducing the typical time required for AI model training from weeks to days. This is the industrialization of quantum technology, and it’s happening now, in Australia.
An Expanding and Diversified Commercial Landscape
Australia’s commercial quantum sector is gaining global traction. More than 40 companies are now developing quantum technologies across a range of verticals from processors and software to sensors and simulation tools. Several firms have achieved international recognition for the maturity and specificity of their offerings:
- Silicon Quantum Computing (SQC) is the world’s only company to fabricate its quantum chips at the atomic scale in silicon. The company’s industry-defining manufacturing process allows it to deliver world-leading algorithmic performance for quantum computing systems. Founded by Professor Michelle Simmons at the University of New South Wales (UNSW), the company is backed by significant investment from the Australian Government, alongside Telstra and the Commonwealth Bank. SQC’s first product, the “Watermelon” processor, has helped enhance Telstra’s classical AI models by matching deep learning performance while reducing training time and energy use. In 2025, SQC was selected by DARPA to advance to Stage B of its Quantum Benchmarking Initiative. SQC is currently expanding its capabilities globally, working with industry leaders to deliver outcomes with quantum systems.
- Diraq is building scalable, error-corrected quantum computers based on modified silicon transistors. Diraq’s pioneering technology will place billions of qubits on a single chip, compared with the hundreds of qubits that exist today. Founded by globally acclaimed quantum physicist Professor Andrew Dzurak, Diraq spun out of UNSW, and has a growing presence in the U.S. with operations in Palo Alto, Boston and Chicago, and deepening international partnerships. In 2025, Diraq was selected by the U.S. Defense Advanced Research Projects Agency (DARPA) to advance to Stage B of its Quantum Benchmarking Initiative, highlighting the company’s potential in next-generation quantum platforms. Diraq’s leadership represents the global ambitions of Australia’s deep-tech sector.
- Quantum Brilliance is developing portable, room-temperature quantum chips using synthetic diamond that can power miniaturised sensors, QPUs in AI data centres, robots, and satellites, enabling these systems to be deployed everywhere. In 2025, the company opened the world’s first commercial Quantum Diamond Foundry in Melbourne to supply quantum-grade diamond at scale, enabling domestic and global device manufacturing. Quantum Brilliance has deployed hybrid quantum–classical processors to supercomputing centres in Australia, the U.S., and Germany, and partnered with Oak Ridge National Laboratory to advance parallel quantum computing architecture. Its “Quoll” quantum computer was named one of TIME’s Best Inventions of 2025. Quantum Brilliance is partnering with leading foundries, system integrators, and computing leaders to advance diamond-based quantum technology.
- Phasor Quantum is pioneering the development of synthetic diamond quantum sensing technology for magnetic navigation in GNSS-denied environments. The company has successfully completed more than 8,000 km of flight trials with the Australian and U.S. governments. These trials demonstrated the sensor’s capability to deliver resilient aircraft navigation without GPS by harnessing the Earth’s crustal magnetic fields. Phasor Quantum, together with Quantum Brilliance and a consortium of academic partners, is now working to integrate the company’s beta-prototype sensor into an Autonomous Underwater Vehicle for magnetic navigation testing and evaluation.
- QuantX Labs is pioneering portable optical atomic clocks for resilient positioning, navigation, and timing in contested environments. In 2025, two of its quantum clocks were tested in Washington, D.C. alongside models from the University of Adelaide, as part of AUKUS Pillar II collaboration with the U.S. and U.K. These trials assessed the clocks’ performance for defense applications such as detecting GPS spoofing and synchronising communication networks. QuantX Labs, along with fellow Australian sensing companies Deteqt and Phasor Quantum, is raising capital to scale and commercialise their advanced sensing technologies.
These companies operate within a collaborative national ecosystem supported by Australia’s national science agency (CSIRO), research institutions, and an active domestic customer base, and are increasingly embedded in global value chains, delivering export-ready quantum solutions across telecoms, infrastructure, finance, and defense.
QuantX Labs Optical Frequency Comb undergoing environmental testing. The Optical Frequency Comb is a component of the QuantX Labs TEMPO.Space product, which is set to be launched into space in Q1 2026.
Global Alignment Through AUKUS and International Engagement
Australia’s quantum trajectory is being formed in concert with international allies, particularly the United States and United Kingdom. Under the AUKUS trilateral security partnership, quantum technology has been identified as a pillar of advanced capability development. In 2022, the three countries established the AUKUS Quantum Arrangement (AQuA) to coordinate R&D and prototype deployment across quantum sensing and navigation.
By mid-2024, the AUKUS partners had eased export control restrictions on quantum technologies, facilitating more agile collaboration among researchers and suppliers across the alliance. For Australian quantum companies, this has lowered the barrier to joint development projects with U.S. and U.K. entities, especially in defense, space, and critical infrastructure contexts. In October 2025, President Trump officially endorsed the AUKUS partnership during a White House meeting with Prime Minister Albanese, signalling strong political commitment from the U.S. to allied technology collaboration.
Recent business and diplomatic exchanges have further reinforced this momentum. In September 2025, a high-level Australian delegation, led by the Australian Trade and Investment Commission, participated in the Quantum World Congress in Washington, D.C., engaging with U.S. counterparts on opportunities for joint R&D, commercialisation, and export. Meanwhile, an Australian delegation to the UK Quantum Showcase in London allowed companies from across Australia’s ecosystem to connect with British industry and government to explore applications in infrastructure, defence, and advanced manufacturing. The three nations committed to a range of new initiatives to advance safety, security, and prosperity during the AUSMIN and AUKMIN consultations in December 2025. Coordination across policy, research, industry, and diplomacy is central to Australia’s approach.
Miniaturised, room-temperature quantum computing products developed by Quantum Brilliance.
Research Foundations, Strategic Policy and Government Investment as the Scaffolding for Commercial Competitiveness
Australia’s rise in quantum technology has been supported by ambitious government strategy and direct investment. In May 2023, the federal government released Australia’s first National Quantum Strategy, setting a vision for the nation to be a leader in the global quantum industry by 2030. This strategy coordinates efforts across research, industry, and government to accelerate quantum innovation and commercialisation. It is supported by major funding commitments, including the National Reconstruction Fund, which has earmarked A$1 billion for critical technologies including quantum.
Beyond direct funding, the Australian government has established infrastructure to support innovation and collaboration. Quantum Australia, the national quantum growth center, has reinforced cooperation between researchers, startups, and end-users, including through its flagship industry conference.
Australia’s leadership in quantum technology has deep roots in academic excellence. As early as 2000, Australia became the first country to link multiple universities in a national quantum research Centre of Excellence, jump-starting a cross-institutional network that has since produced globally significant breakthroughs. This research ecosystem now includes more than 60 active quantum research groups and 26 dedicated research organisations. The Australian Research Council (ARC) has played a central role by funding collaborative centres and training programs, resulting in a domestic workforce that now ranks fifth globally in quantum talent density.
The Australian model encourages close interplay between universities and commercial ventures. Many leading quantum startups are direct spinouts of university labs, illustrating how academic work is consistently converted into entrepreneurial output. This tight integration between research and industry is a key differentiator of Australia’s ecosystem.
Operationalizing Australia’s Quantum Ambition
Australia’s quantum sector is entering a new phase defined by commercial traction and international alignment. Quantum companies are delivering products with measurable utility, and global partners are engaging through investment, joint development, and procurement.
The Australian Trade and Investment Commission can assist with connections to this ecosystem. With staff embedded in key markets including the U.S. and U.K., the Australian Trade and Investment Commission actively facilitates trade and investment by linking international stakeholders with Australian quantum ventures, research institutions, and government.
For all inquiries, contact [email protected].
The Quantum Australia Conference will take place in Adelaide, South Australia on 29-30 April 2026. Book your tickets now.
