Two space companies have signalled the possibility of a defence force future for a remote base near the NT town of Nhulunbuy.

Equatorial Launch Australia (ELA) has signed an agreement with United States rocket company Phantom Space Corporation to collaborate on missions at the Arnhem Space Centre (ASC) in the NT.

Phantom, which has confirmed it has had links to the US Department of Defense, has voiced its hopes to mass-produce rockets and fire orbital rockets from the north-east Arnhem Land site by 2025.

Mark D Lester, Phantom's chief operating officer, said that "since the US and Australia remain close allies, it is possible we will conduct defence missions" at the Arnhem Space Centre in the future.

The head of the ADF's Space Command says Australia is working on a plan to take out enemy satellites without creating dangerous debris.

Last year, top ranking members of the US Space Force described Australia as a "pot of gold at the end of the rainbow", saying the country's geography was "prime" for future space operations.

"Geography is really important. We need to be able to see to protect, and we can see a lot from here," Vice Admiral Roberts said.

"And that goes for non-kinetic effects from the ground too, because it's what you can see and where you can effect it".

once again, our strategic direction dovetails perfectly to USA demands

Visiting senior US military officers believe Australia is a "pot of gold at the end of the rainbow", as they eye off this continent's "prime" geography for future space operations.

General Shaw has warned a conflict in space in the next few years is a very real prospect, saying potential adversaries have already shown they can successfully shoot down satellites.

Australia's own Defence Space Command was only formally stood up in March, but General Armagno says this country already has the natural advantage of its southern-hemisphere geography and potential launch sites close to the equator.