BAE Systems will Partner with ASC Pty Ltd to Build Australia’s Nuclear-powered Submarines

British firm BAE Systems will partner with ASC Pty Ltd to build Australia’s nuclear-powered submarines.

First announced in September 2021, AUKUS is a trilateral security and defense partnership between Australia, the U.K., and the U.S. that will see the three nations work together on a range of capabilities, including a conventionally armed, nuclear-powered submarine capability for Australia. Opportunities through the AUKUS supply chain for British industry could be worth billions across the life of the Australian submarine program. This includes Rolls-Royce, which will deliver the nuclear propulsion plants for the Australian program, the U.K. defense ministry said in a statement.

As announced in March 2023, Australia has agreed to make a significant investment in the U.K.’s submarine industrial base, including Rolls-Royce, Sheffield Forgemasters, and their supply chains, to support the delivery of the Australian SSN-AUKUS program. This investment, alongside funding from the U.K. Ministry of Defense, will enable the Rolls-Royce Derby site to double in size. At its peak, there will be over 21,000 people working on the SSN-AUKUS programs in the U.K. – concentrated in Barrow-in-Furness and Derby.

The first U.K. submarines built to this design will be delivered in the late 2030s to replace the current Astute Class vessels, and the first Australian submarines will follow in the early 2040s. The appointment of a builder by Australia comes a year after Prime Minister Rishi Sunak, Australian Prime Minister Albanese, and U.S. President Biden met in San Diego, where they announced that the first generation of AUKUS submarines would be based on a U.K. design.

The partnership has carried out extensive engagement with the International Atomic Energy Agency, with all countries committed to developing an approach that protects classified information.