Defence invests $19 million to help local companies join US submarine supply chain

Defence has invested $19 million in the Australian Submarine Supplier Qualification (AUSSQ) Pilot. Defence awarded Huntington Ingalls Industries (HII) Australia an initial $9.6 million contract to deliver the pilot phase of the AUSSQ program in March 2025, and has invested a further $9.3 million to deliver additional work packages.

Twenty-two Australian businesses are already taking part, with eight now fully qualified: MacTaggart Scott Australia; Levett Engineering; Century Engineering; H E Parts International; Veem; Hofmann Engineering; Dobbie; and MTA.

Three of the twenty-two participating Australian businesses have now been invited to quote for work in the US supply chain: Hofmann Engineering; Veem; and Axiom.

This investment was announced shortly before the Washington DC meeting between Australian Prime Minister Anthony Albanese and US President Donald Trump which endorsed the transfer of US Navy Virginia-class submarines to Australia from 2032. It is designed to provide more opportunities for Australian businesses to secure high-value manufacturing contracts in the United States submarine industrial base, the Department says.

“This $19 million investment is helping Australian businesses break into global supply chains and contribute to allied industrial capacity,” said Pat Conroy, Minister for Defence Industry. “It’s about creating jobs, growing skills, and giving our manufacturers a chance to compete on the world stage.”

The initial phase of the program, delivered by H&B Defence, a HII and Babcock joint venture, focused on Australian businesses doing castings, forgings and precision machining. This second tranche of investment will focus on industry uplift activities involving air and gas flasks and fabricated parts, says Defence.

The Department says AUSSQ is helping local companies become approved suppliers to HII, the largest military shipbuilder in the US and one of two companies that builds US nuclear-powered submarines. AUSSQ complements the Defence Industry Vendor Qualification Program (DIVQ), says Defence, and is part of a broader effort to grow Australia’s defence industrial base. These programs are helping Australian companies meet US standards, navigate export approvals, and connect with global supply chains.

This industrial uplift is also helping to expand Australia’s submarine industrial base and prepare local companies for the work required to build and sustain Australia’s future fleet of conventionally-armed, nuclear-powered submarines.

“AUKUS is delivering real benefits for Australian industry and jobs,” said Conroy. “This program is helping build a strong, sovereign submarine enterprise that will keep Australia safe for decades to come.”