Prime Minister Malcolm Turnbull is on a three-day visit to South Australia where he has announced Adelaide will house a $230 million defence hub.
The Centre for Defence Industry Capability will work with businesses to drive innovation and exports, he says.
The coalition looked like losing key seats in South Australia in the upcoming election when it appeared new submarines would be constructed overseas.
No decision has yet been made on the new subs, though it's increasingly likely they will be built wholly or mostly in Adelaide.
A significant portion of the defence spending outlined in the new Defence White Paper will go to South Australia, with new frigates and offshore patrol vessels to be built there in whole or part.
But that work is still a few years away and in the meantime, the state will lose its carmakers and other industries are under threat.
South Australian Premier Jay Weatherill plans to lobby Mr Turnbull for assistance for troubled steel producer Arrium which has flagged a $60 million shortfall in funding required to operate its Whyalla plant.
The premier will also raise cuts to hospital funding, the future submarines contract and Commonwealth funding for major projects when the pair meet on Tuesday night.
Mr Turnbull is expected to hold a cabinet meeting in Adelaide on Tuesday before hosting an afternoon tea to mark International Women's Day.
