Australian Government Pledges Extra A$262m Submarine Programme Investment

Australia will invest an additional A$262 million — about £133 million — in domestic industries to boost their skills and capacity to build nuclear-powered submarines.

The Albanese Labor Government yesterday (Tuesday) promised the additional cash to support Australia’s nascent AUKUS nuclear-powered submarine supply chain. 

As per a press statement on the Australian Government website, the drive to produce its own nuclear subs “will be one of the greatest industrial endeavours in Australian history” and “will also play a vital role in growing more robust and resilient supply chains between Australia, the United Kingdom and the United States.”

About 125 Australian firms have been earmarked as in line for funding boosts across the next two years as a result of the newly announced initiative; they represent a mixture of new projects and existing programmes.

The cash will be distributed via the Defence Industry Development Grants Programme; the Global Supply Chain Programme; and the Defence Industry Vendor Qualification Programme.

Under the AUKUS agreement, Australia will acquire three Virginia-class submarines from the U.S. in the 2030s, as well as the transfer of information and equipment from the U.K. for use in Australia’s five domestically produced SSN-AUKUS submarines.

The SSN-AUKUS vessels will be powered by Rolls-Royce Pressurised Water Reactors (PWR). They are likely to be identical to or a derivative of the PWR3 variant, which will have a lifespan of at least 30 years, removing the need for refueling.

Deputy Prime Minister Richard Marles commented: “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.

“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 momentum we are building for Australia’s conventionally-armed, nuclear-powered submarine program is exemplified by the workforce we continue to build and the growing opportunities for Australian industry.” 

Minister for Defence Industry and Capability Delivery Pat Conroy said: “The Australian Government continues to work in a targeted way with our AUKUS partners and Australian industry to get Australian products into U.K. and U.S. supply chains.”

He added: “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.”

• You can read more details on the Australian Government website