How Breakthrough Victoria’s targeted quantum investment is building a $6 billion industry expected to employ nearly 20,000 people by 2045* — and securing long‑term advantage for Victoria.
Quantum technologies are progressing beyond foundational research toward practical applications with growing industrial relevance. In Australia - and particularly in Victoria - capability has been developing across quantum computing, sensing, materials and enabling technologies for some time, reflecting an understanding of how these technologies can augment existing industries and support long-term economic advantage.
Recent OECD analysis reinforces this position, showing that Australia has been among the most significant public investors in quantum technologies in recent years. While this level of investment underscores the strategic importance of the field, capital deployment alone is not sufficient. The critical challenge - and opportunity - lies in how quantum technologies are developed, integrated with adjacent capabilities, anchored locally to deliver enduring industrial and economic outcomes and given the appropriate workforce development and training.
Talent readiness and operating capability - not the precise timing of technical breakthroughs - will be decisive in determining who captures value as quantum technologies mature, as highlighted by Deloitte in this industry analysis .
A systems view of quantum technologies
Breakthrough Victoria views quantum not as a single technology, but as a set of enabling capabilities that will augment existing sectors - from advanced manufacturing and defence to health, energy and climate science. Quantum computing sits alongside quantum sensing, communications, materials and control systems, and must be developed in concert with companion fields such as artificial intelligence, advanced classical computing (including supercomputing), and the digital and physical infrastructure that underpins them.
This systems‑based perspective has guided Breakthrough Victoria’s investment approach from the outset. Even at the time of the earliest opportunities in 2022, the quantum sector presented a wide range of potential pathways. Rather than focusing on a single technological outcome, investments have been directed towards companies that align with Australia’s existing and emerging strengths - particularly in Victoria - and that are positioned to capture critical points in global value chains through hard‑to‑replicate capabilities. These capabilities include differentiated technologies, specialised talent, deep industry and regulatory expertise, and strong networks spanning customers, suppliers and research institutions.
This approach also reflects uncertainty around which technologies will ultimately dominate. As a result, Breakthrough Victoria has adopted a portfolio mindset, supporting multiple areas of the quantum landscape while seeking to catalyse further private and public investment across the capital stack, from start‑ups and scale‑ups through to infrastructure and workforce development.
Building sovereign capability with Quantum Brilliance
Breakthrough Victoria’s investment in Quantum Brilliance demonstrates how this strategy translates into real industrial outcomes. Quantum Brilliance is a global leader in diamond-based quantum technology, developing compact, portable quantum devices that can operate at room temperature - overcoming one of the key barriers to real-world deployment.
In December 2024, Breakthrough Victoria completed a $10 million follow-on investment to support the establishment of the world’s first commercial Quantum Diamond Foundry , now opened in Melbourne. The facility enables the manufacture of lab-grown diamonds that can be embedded into integrated circuits, anchoring a critical enabling capability for next-generation quantum devices in Victoria. This builds on BV’s initial investment in 2022, bringing total support for Quantum Brilliance to $18 million.
By establishing advanced quantum manufacturing locally, the foundry strengthens sovereign capability, creates highly skilled jobs, and positions Victoria within a global supply chain for quantum and quantum-adjacent technologies - well beyond a single application or end market.
On the ground in Victoria, Quantum Brilliance is providing the enabling materials to develop a quantum diamond sensor chip for medtech start-up FeBI that can detect blood iron levels at orders of magnitude greater than what is possible today - addressing the large scale of iron deficiency and or excessive iron misdiagnoses that occur today.
A laser illuminates the nanodiamonds used to develop a prototype iron sensor (FeBi). Image by David Simpson, published by The Royal Society of Victoria.
The same is being done for medtech Chromos , to more accurately map brain activity.
Chromos' voltage imaging diamond sensor measuring neurons alongside traditional electrical probes. Image credit: University of Melbourne.
Quantum Brilliance is also working with startup Phasor Innovation to provide enabling diamond-based substrates / materials to develop next generation magnetometers that enable accurate navigation globally without the need for GPS.
Scaling global quantum leaders through Infleqtion
Breakthrough Victoria has also backed Infleqtion , one of the world’s most advanced quantum technology companies, through $45m of investment over three years. Infleqtion develops neutral-atom quantum computers, quantum sensors, precision timing systems and quantum software for governments, enterprises and research institutions.
While Infleqtion operates at global scale and is preparing to list on a US stock exchange, its growing presence in Victoria reflects Breakthrough Victoria’s focus on aligning global opportunity with local capability. The company has anchored operations at CoLabs in Notting Hill, and is expanding its footprint through research partnerships with Swinburne University, the University of Melbourne, RMIT and CSIRO, as well as workforce development initiatives and active participation in Australia’s quantum ecosystem.
This combination - global leadership paired with local integration - illustrates how international quantum companies can contribute to building sovereign capability, skills and spillover benefits across the Victorian economy.
In Victoria, Infleqtion is currently workingwith L3Harris, Safran and RMIT on RF detection quantum sensors and with Swinburne and RMIT on the development of quantum-enabled position, navigation and timing (PNT) systems - aimed at providing alternatives to Global Navigation Satellite Systems (GNSS) in denied or contested environments.
Image credit: Infleqtion
Beyond individual investments
Breakthrough Victoria’s role in the quantum ecosystem extends beyond its two larger investments. Ongoing support is provided for the incubation and growth of emerging Australian quantum start‑ups, alongside collaboration with national and international partners to strengthen the broader ecosystem.
This emphasis reflects the long lead times required to develop quantum-ready talent and operating models. Global analysis from Deloitte suggests organisations that engage early - through experimentation, partnerships and workforce development - are more resilient across a wide range of possible technology trajectories, regardless of whether large-scale quantum computing arrives sooner or later than expected.
While specific technologies continue to evolve, areas such as quantum sensing, photonics‑based hardware and scalable computing research leading to fault‑tolerant quantum compute (FTQC) capabilities - represent parts of the ecosystem where Victoria is well positioned to build competitive advantage.
While the mandate is firmly focused on delivering outcomes for Victoria, the approach is global in outlook and aligned with national priorities. This includes co‑investment alongside Australian and international partners, collaboration across jurisdictions, and participation in ecosystem‑building and standards‑setting initiatives that help shape the future direction of the industry.
Looking ahead
Quantum technologies will not evolve in isolation. Their impact will be realised through integration with existing industries, infrastructure and digital systems, and through sustained, coordinated investment over time. The OECD’s latest analysis reinforces the strategic importance of this field. At Breakthrough Victoria, our focus remains on turning that strategic importance into enduring capability - building a resilient, globally connected quantum ecosystem that delivers long-term benefits for Victoria.
*Figures from CSIRO's The Growing Australia's Quantum Technology Industry report