The Astute-class submarine HMS Anson arrives at HMAS Stirling in Western Australia on 22 February for a regional deployment and scheduled maintenance period. Photos: ADF.
The Federal Government has announced a $310 million payment to acquire critical long-lead items for Australia’s nuclear-powered submarine (SSN) ambitions.
The announcement, made by Defence Industry Minister Pat Conroy in London, said Australia had paid to directly support the manufacture of critical components, including the nuclear propulsion systems for its first two SSN-AUKUS boats, which are planned to be built at Osborne in Adelaide from late next decade.
The announcement said that under the trilateral AUKUS construct, the UK would deliver complete, welded nuclear propulsion systems for the Australian‑built boats, which won’t enter service until the 2040s. Work was already underway at the Rolls‑Royce Submarines facility in Derby.
This latest investment is in addition to Australia’s contribution of £2.4bn (A$4.6bn) over 10 years to expand the production capacity of Rolls-Royce Submarines. On top of this, Australia has invested US$3bn (A$4.25) in the US submarine-building industrial base to acquire between three and five US-built Virginia-class SSNs from 2032.
Despite both of these huge investments, there remains no guarantee that the US and UK will have sufficient capacity to deliver SSNs to Australia.
The announcement follows Senator Conroy’s engagement at the Australia-United Kingdom Defence Industry Dialogue (AUKDID), held in London on the weekend.
In a statement, the government said industrial cooperation between Australia and the UK was the key to AUKUS and a shared commitment to delivering a safe, secure and enduring submarine capability. It said Rolls‑Royce Submarines was a cornerstone of the UK’s nuclear submarine enterprise and a key partner in the delivery of SSN‑AUKUS.
It added that securing these long‑lead items now helped ensure “schedule certainty” and strengthened supply chain resilience, while also reflecting Australia’s commitment to the highest standards of nuclear safety, security, and non‑proliferation, consistent with international obligations and best practice.
The announcement and Senator Conroy’s visit follow last week’s announcement of the government’s $3.9 billion investment in the new Submarine Construction Yard at Osborne, where the SSN-AUKUS boats will be built and maintained.
Defence Minister Richard Marles said Australia continued to work with the UK and US to develop the capabilities, skills and knowledge that would underpin Australia’s ability to build, operate and maintain SSNs.
“Early investment in components such as the nuclear propulsion systems will be critical to the delivery of AUKUS,” he said.
“By working with our AUKUS partners, the Albanese Government continues to support defence industry and workforce cooperation, which will in turn support jobs in Australia for generations to come.”
Defence Industry Minister Senator Pat Conroy (right) meets British defence officials in London on Sunday. Photo: ADF.
Senator Conroy said starting work early on critical submarine components was essential to keeping the program on track.
“The next-generation SSN-AUKUS submarines will be an extraordinary capability, designed and built by trusted partners and powered by a company with decades of nuclear-propulsion experience,” he said.
“Australia’s investment is helping to lay the foundations for a sovereign capability that will keep Australians safe for decades to come. This is a concrete example of allied industrial capacity delivering real benefits for Australia.
“It is also creating and supporting skilled jobs, training and educating workers, creating opportunities for Australian industry and strengthening AUKUS supply chains, and ensuring the highest standards of safety and security.
“Together with our record investment at Osborne in South Australia, this demonstrates Australia is serious about building a safe, secure and enduring submarine capability that contributes to regional stability and delivers tangible benefits for Australian workers and businesses.”
Senator Conroy told ABC Radio National that the AUKUS program remained on track.
“The AUKUS program, which is nation-building for our country, creating 20,000 high‑skilled jobs and giving the navy the best submarines in the world, is hitting every milestone, and so far what I’ve seen in the UK confirms that,” he said.
“We’ve hit every major milestone, so we’re on track to cut steel by the end of the decade and for the first AUKUS submarine to be delivered in the early 2040s.”
Asked about claims by new Opposition Defence spokesperson Senator James Paterson that the government was cannibalising Defence to pay for the AUKUS submarine plan, Senator Conroy suggested his Opposition counterpart was demonstrating a gross ignorance of his portfolio.
“He should do less time talking and more time reading,” he said.
“We’re increasing the defence budget, we’ve increased it by $70 billion over the decade, which is the largest peacetime increase in the defence budget … we’re building capability in every domain.
“Senator Paterson’s comments were incredibly ignorant. He talked about needing more missiles; well, we’re building missiles and we’re getting more strike. He said we needed more drones; well, we’ve got the first armed drone in the country’s history, when his government cancelled the only armed drone project at the time.
“So I think he should just focus on getting up to scratch on a new portfolio that he’s got.”
