Australia to build $1b worth of armoured vehicles for Germany: AAP

More than 100 armoured vehicles will be made in Queensland for Germany under a $1 billion defence deal, as Anthony Albanese lauds it as Australia's single largest military export agreement.

The prime minister visited Rheinmetall's Vehicle Centre of Excellence at Ipswich on Tuesday to spruik the deal, expected to generate 600 direct jobs in Queensland.

Germany's parliament has approved a plan to buy the Boxer heavy weapon carrier vehicles.

They will be built in Queensland by the German company's subsidiary, Rheinmetall Defence Australia.

Mr Albanese said manufacturing the vehicles boosted the nation's sovereign capability while strengthening the country's security partnership with a European power.

"Export opportunities like this are a win-win," he said.

"We can partner with our friends - in this case in Germany, with a German company - to produce goods here that will then be exported to Germany.

"Producing jobs here - but also producing economic activity and income for Australia."

Mr Albanese said the deal was part of the government's broader push to bring more manufacturing jobs to Australia.

"This is a part of the vision that we have - last week we were there in the Upper Hunter, looking at advanced manufacturing there at the Liddell site," he said.

The first Boxer is expected to be exported to Germany in 2026, with the contract to be completed by 2030.

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