BAE Systems won a multi-billion-pound contract to build Australia’s nuclear-powered submarines, which will boost British jobs and industry.
The Australian government, as part of the Aukus Defence Pact between the UK and US, has selected BAE along with domestic defence company ASC Pty for the delivery of the vessels early in 2040.
The SSN-Aukus attack subs are the largest, most powerful and technologically advanced attack submarines Britain’s ever deployed.
The reactors , developed by Rolls-Royce, will be British-made.
Grant Shapps the Defence Secretary who is visiting Australia said that the deal will create “security and prosperity to our two countries”.
He said: “In an increasingly dangerous world, the announcement made today symbolises our partner Australia’s huge faith in our world-leading defense industry, which includes companies like BAE Systems and Rolls-Royce.”
Charles Woodburn said that the deal solidified his company as a “key player in Australia’s defence and maritime landscape”.
He said: “We look forward to working together with ASC in order to build a long-lasting, sovereign, nuclear-powered sub building capability for Australia.”
According to reports, the UK and Australia are expected to seek to reach an agreement on a common design of submarines for the SSN Aukus programme in order to maximize build efficiency and interoperability.
Australia announced that it would invest £2.4bn, as part of the agreement signed on Thursday, in the UK’s industrial base for submarines, including BAE’s work in design and Rolls-Royce, which will be able to produce reactors in its Derby nuclear facility.
Rolls is expected to create 1-170 high-skilled positions. The move was made to address concerns that Britain would struggle to meet ambitious deadlines under the Aukus agreement.
Lord Cameron, Foreign Secretary of the UK, told Australian broadcasters that the UK is up to the challenge. He told ABC, “We are committed to it.”
At the massive BAE submarine shipyard located in Barrow-on-Furness in Cumbria, around 1,000 BAE employees are currently working on the SSN-Aukus program. It is expected that the first UK submarines will be finished in the late 2030s.
BAE will be delivering the Dreadnought class of nuclear-armed subs to the UK in the 2030s.
A joint venture between BAE & ASC will build Australia’s submarines at Osborne Naval Shipyard near Adelaide.
BAE has already built six anti-submarine Frigates for Australia based on the Type 26 design at the same location.
Australia will gradually replace the existing fleet of diesel powered Collins-class submarines with the Aukus Deal, initially with Virginia-class vessels bought from the US early in the 2030s and then the SSN-Aukus Class.
In March 2023, the US President Joe Biden, Australian Prime Minister Anthony Albanese, and British Prime Minister Rishi sunak announced that Britain would design the SSN-Aukus submarines. The first agreement was signed in 2021. As part of this pact Australia reneged on a previous agreement to purchase French vessels, which triggered a diplomatic dispute with Paris.
Due to their ability operate more quietly and remain underwater longer than diesel-powered counterparts, nuclear-powered submarines are considered essential in countering Chinese aggression.
They are seen as crucial in containing the Chinese Navy in a possible conflict over Taiwan – partly because they could be waiting at “chokepoints” along the string islands between Japan and the Philippines, as well as Indonesia.