Premier Roger Cook said defence was set to become Western Australia's second-biggest money earner after mining, as he spruiked a plan to create a defence manufacturing hub on Tuesday.
"The world is an uncertain place today, and WA is in a key geopolitical space as part of our overall defence efforts," he told reporters at the Indian Ocean Defence and Security Conference in Perth.
"We can't turn our back on the rest of the world ... it's important that we continue to do what we can to continue to make WA a secure and peaceful place to live."
Collie, a coal-mining town about two hours south of Perth that's transitioning away from fossil fuel production, has been flagged as a potential site.
The plan, which has been panned by WA's opposition as a thought bubble, would see the so-called Western Defence Forge potentially become a manufacturing base for "anything in the defence supply chain".
The state is already set to become an operational hub for Australia's nuclear-powered submarine fleet as part of the AUKUS pact.
WA Defence Industries Minister Paul Papalia said the new manufacturing hub could include military vehicles, satellite components, equipment for soldiers or first-aid kits.
"We're not constraining the spectrum of what might be delivered," he said.
"What would make sense is things like energetics, which is the propellant for solid-fuel rocket motors ... the stuff that makes the missiles and rockets fire.''
Mr Papalia said the government was in discussions with defence suppliers from around the world and Australia amid calls for expressions of interest to bring their businesses to the state.
"It's a dangerous world (and) we need more capability," he said, as he batted away questions about WA becoming an arms dealer.
Asked the same question, Mr Cook said he was "a jobs dealer, I'm about establishing jobs".
"This will help diversify our economy, create jobs, literally thousands of jobs for the next generation," he said in reference to the broader defence industry in WA.
The opposition's energy spokesman, Steve Thomas, said the plan lacked substance.
''We all want to see economic diversity in Collie as the Labor Party closes down the coal industry, but today's announcement is a million miles from a firm commitment to new jobs in defence,'' he said.
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