Australia’s $3bn UK deal: Closer to nuclear-powered submarine fleet

Australia is poised to invest 4.6 billion Australian dollars ($3 billion) into the UK’s industry, enhancing the development of nuclear-powered submarines to ensure the timely readiness of its new fleet. This move follows a newly inked defense and security agreement between Australia and the UK, aimed at addressing challenges like China’s heightened presence in the South China Sea and the South Pacific.

UK Defense Minister Grant Shapps emphasized the necessity of this costly initiative, citing the growing assertiveness of China and escalating global dangers as key reasons for bolstering security measures, including safeguarding maritime navigation.

This strategic partnership, unveiled during an annual ministerial conference, is set to enhance the manufacturing capabilities at the Rolls-Royce facility in Derby, UK. This factory will be responsible for constructing the nuclear reactors that will power the submarines, which are to be assembled by BAE Systems in Adelaide, Australia. The submarines, based on a UK design and equipped with US weapons systems, are part of the broader AUKUS agreement, which includes Australia, the UK, and the United States.

Australian Defense Minister Richard Marles highlighted that this agreement underscores the commitment to the AUKUS program’s success. He anticipates that it will lead to the establishment of one of the world’s most sophisticated manufacturing operations.

The plan includes the acquisition of at least three US nuclear submarines starting in the early 2030s. A joint statement by Marles, Shapps, and US Defense Secretary Lloyd Austin affirmed the trio’s dedication to this venture, noting its significance in expanding the industrial and resilience capabilities of AUKUS partners for future submarine production and maintenance.