Defence Minister Richard Marles says the joint venture between ASC and BAE Systems is nothing to do with the US. Photo: ADF.
The Federal Government has cemented a tripartite agreement between the Australian Submarine Agency, ASC and BAE Systems to commence preparatory work to build SSN-AUKUS submarines for the Royal Australian Navy.
The agreement follows the March 2024 announcement that BAE Systems and ASC were named as the Sovereign Submarine Build Partner and Sovereign Submarine Sustainment Partner respectively for Australia’s SSN-AUKUS submarine, construction of which is due to commence late next decade.
Since then, the two partners have worked with the Commonwealth to develop a collaborative agreement to enable planning, workforce development and procurement activities in the lead-up to the build program commencing.
Through these arrangements, ASC and BAE Systems will develop critical plans and schedules for the mobilisation of the SSN-AUKUS build program, invest in developing and growing the submarine workforce, procure long lead items, and undertake risk reduction activities.
The risk reduction work will initially comprise validating infrastructure requirements, configuring production, test and evaluation processes, and conducting prototyping activities.
On the periphery of this agreement, the Commonwealth has acquired land at Osborne near Port Adelaide where the submarine construction yard will be located, has appointed concept design partners for the shipyard, and has inducted ASC personnel into nuclear-powered submarine sustainment activities with the US Navy in Hawaii and in Western Australia.
Royal Australian Navy personnel have also taken up exchange postings with the US Navy, with the first cadres having graduated from that service’s prestigious Nuclear Power School and Nuclear Power Training Unit.
More recently, RAN personnel have also graduated from the UK Royal Navy’s elite nuclear operator course and engineering administration course, and the follow-on nuclear reactor course.
Defence Minister Richard Marles said the announcement of the agreement was a major milestone towards the construction of Australia’s SSN‑AUKUS boats.
“These mobilisation arrangements provide the foundation that will underpin a generational uplift in Australia’s industrial base for the construction of this critical capability,” he said.
“Construction of Australia’s first SSN-AUKUS submarine will commence in Australia by the end of this decade, and the work to deliver this capability is already well underway.
“This will be a whole-of-nation undertaking, one which will provide Australia with robust and resilient supply chains that enhance our national security.”
Finance Minister Katy Gallagher said it was a significant day for Australia’s shipbuilding capacity and future of the industry.
“The arrangements signed between ASC and BAE Systems will ensure the strong foundations necessary for the construction of Australia’s nuclear-powered submarines,” she said.
The announcement coincided with a new skills package which will see 275 entry-level positions including 12-month traineeships leading to a CERT III qualification, and a full apprenticeship program in fabrication, mechanical and electrical qualifications over a four-year period. These will be delivered by TAFE SA.
The announcements come at a time of uncertainty for AUKUS following the return to office of President-elect Donald Trump in January. In particular, there are concerns whether the US will honour the agreement to supply between three and five Virginia-class boats to Australia from 2032 before the first UK-designed and Australian-built SSN-AUKUS boats become available in the 2040s.
When asked about this, Mr Marles said the agreement between the Commonwealth, ASC and BAE Systems was nothing to do with the US.
“A joint venture which is between BAE, ASC and that will in turn, contract with the Commonwealth to build our future submarines,” he said. “So, in that sense, the United States, in respect of this part of AUKUS is not a party to these agreements.
“In terms of your question, we’ve said this repeatedly, that when you look at the actions of who have been part of the Trump team, who have been Republicans, Trump Republicans have been completely supportive of AUKUS. And that’s not just in terms of word, although it is in terms of work, but it’s also in terms of action.”
