Defence orders long-lead items for its nuclear-powered submarines

Defence has announced a $310 million payment for the acquisition of long‑lead items from the United Kingdom for the reactors to be used in the RAN’s first two nuclear‑powered SSN-AUKUS submarines.

The submarines themselves will be built at Osborne in South Australia, but under the AUKUS program the United Kingdom will deliver complete nuclear propulsion systems for Australian‑built SSN‑AUKUS boats, with work already underway at the Rolls‑Royce Submarine facility in Derby.

Early progress on reactor manufacturing is essential to maintaining program momentum, sustaining specialist skills, and align industrial schedules across the AUKUS partnership, said Defence in a media release. This investment is in addition to Australia’s contribution of £2.4 billion ($4.6 billion) over 10 years to expand the production capacity of Rolls-Royce Submarines.

The announcement follows the Australian Government’s recently announced investment of $3.9 billion as a down payment to deliver the new Submarine Construction Yard in Osborne. This investment ensures sovereign capability for conventionally‑armed, nuclear-powered submarines enabling the start of construction of the SSN-AUKUS nuclear-powered submarines by the end of the decade as planned, says Defence.

“Starting work early on critical submarine components is essential to keeping this program on track,” said Pat Conroy, Minister for Defence Industry, in London. “The next-generation SSN-AUKUS submarines will be an extraordinary capability, designed and built by trusted partners and powered by a company with decades of nuclear-propulsion experience.

“Australia’s investment is helping to lay the foundations for a sovereign capability that will keep Australians safe for decades to come. This is a concrete example of allied industrial capacity delivering real benefits for Australia,” he added. “Together with our record investment at Osborne in South Australia, this demonstrates Australia is serious about building a safe, secure and enduring submarine capability that contributes to regional stability and delivers tangible benefits for Australian workers and businesses.”

The announcement follows Minister Conroy’s engagement at the Australia-United Kingdom Defence Industry Dialogue (AUKDID) which was held for the first time since 2018. Industrial cooperation between Australia and the United Kingdom is key to AUKUS and a shared commitment to delivering a safe, secure and enduring submarine capability, said Defence.