Australia's new Joint Air Battle Management System will buy decision-makers critical time to consider and respond to imminent threats, the head of Lockheed Martin Australia said.
The aerospace company signed a contract with the Department of Defence to build the project (Air 6500-1) on Wednesday.
Air 6500-1 comprises an eight-year strategic partnership that Lockheed Martin Australia says will generate 230 jobs, across Adelaide, Williamtown and Canberra.
It will also create around a further 300 indirect jobs across the air and missile defence supply chain, including through future export opportunities.
"Air 6500-1 will give Australia and our allies a greater level of connectivity and interoperability to counter current and future air and missile threats," Air Marshal (ret) Warren McDonald, chief executive of Lockheed Martin Australia and New Zealand, said.
"In a contested and fast-moving environment, AIR6500-1 will give decision-makers more time to consider and respond to a situation - time in these circumstances is a precious commodity."
Lockheed Martin Australia will partner with other companies, including Boeing Defence Australia, C4i, Leidos Australia, Lucid Consulting Australia, Raytheon Australia, Shoal Group, and Silentium Defence, to deliver Air 6500-1.
Lockheed Martin Australia employs around 30 full time staff in the Hunter, and this number is expected to grow to around 60.
The project is expected to include contracts to build a mixed office building with a workshop, collaboration space, training room, and car parking near the RAAF Williamtown airbase, with a construction time of 70 weeks.
Defence Industry Minister Pat Conroy said the $500 million contract continued the government's work on next-generation air missile defence.
"It is a further demonstration of our unwavering commitment to strengthen national security and provide the Australian Defence Force with the capabilities it needs to make Australians safer," he said.
"The Albanese government is actively creating opportunities for Australian industry, through the entire supply chain of small-and-medium enterprises, as we deliver these critical defence capabilities.
"This is an investment in our national security but also an investment in a future made in Australia which will support local businesses and create hundreds of jobs and support many more."
