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Defence to support Australian industry to join AUKUS submarine supply chains
Defence is investing an additional $262 million in a series of grant programs intended to support local industry capability uplift and develop Australia’s nuclear-powered submarine supply chain.
This will be one of the greatest industrial endeavours in Australian history, says Defence. Australian industry and jobs are at the forefront of the build and sustainment of the country’s future conventionally armed, nuclear-powered submarines, it adds: they will also play a vital role in growing more robust and resilient supply chains between Australia, the United Kingdom and the United States.
Over the next two years Defence says it plans to fund a range of initiatives to uplift around 125 local defence businesses across Australia to invest in their own capabilities to meet the high standards of submarine build and sustainment activities in AUKUS nations, the department says.
“We are continuing to build and invest in an Australian submarine industrial base capable of supporting our future nuclear-powered submarine fleet and underpinning a strong local economy over the coming decades,” according to Richard Marles, Deputy Prime Minister and Minister for Defence.
“This new AUKUS agreement now in effect will further bolster the strong continued progress the Australian Government is making with AUKUS partners to deliver Australia this vital capability. This is a further demonstration that AUKUS is happening now.”
The first tranche of funding will support industry through:
- The Defence Industry Development Grants Program:further investment into eligible Australian businesses intending to participate in the AUKUS submarine supply chain to receive timely uplift funding for security, skills, international accreditations and manufacturing capital equipment for defence domestic or export supply chains.
- The Global Supply Chain Program:expanding the program to support major UK and US submarine industry suppliers to provide commercial opportunities for Australian suppliers and increase Australian participation in trilateral supply chains.
- The Defence Industry Vendor Qualification Program:expanding and accelerating the qualification of Australian products (including, mechanical assemblies, castings, forgings, electro-mechanical components) into US submarine supply chains. This includes working with AUKUS partners to streamline processes and reduce regulatory friction for Australian business.
This investment comes as the AUKUS Naval Nuclear Propulsion Agreement, signed last August, enters into force. The Agreement will enable the transfer of at least three Virginia-class submarines from the US to Australia from the 2030s, as well as the transfer of information and equipment from the UK for use in Australia’s planned five SSN-AUKUS submarines.
Importantly, says Defence, it also reinforces the AUKUS partners’ commitment to setting the highest non-proliferation standard, and is consistent with Australia’s international non-proliferation obligations.
“The Australian Government continues to work in a targeted way with our AUKUS partners and Australian industry to get Australian products into UK and US supply chains,” said Pat Conroy, Minister for Defence Industry and Capability Delivery.
“Our commitments highlight the pivotal role of Australian industry in driving progress not just for our own conventionally-armed, nuclear-powered submarines, but for the fleets of our AUKUS partners as well.”
Further information for Australian business to access these opportunities will be available on the Australian Submarine Agency website. Register interest at https://www.asa.gov.au/business-industry.