One epidemiologist says the "possibilities are seemingly endless".
An in-principle agreement has been struck between Moderna, the Australian government and the Victorian government, with the aim of having the facility running by 2024.
Moderna's Australian head, Michael Azrak, said he was proud the company would have an Australian manufacturing presence.
"We're ready to pitch tent in Australia," Mr Azrak said.
"The facility we're envisaging will have the capability of at least 100 million doses if needs be."