CANBERRA, Australia — Australian steel manufacturer Bisalloy Steel has secured a purchase order valued at approximately US$2 million to supply HY80 submarine-grade steel plate for the construction of U.S. Navy Virginia-class fast attack submarines. The order was placed by General Dynamics Electric Boat (GDEB), the lead contractor for the Virginia-class submarine program.
The contract marks the first time that Australian-produced steel has entered the supply chain for the U.S. Navy's nuclear-powered Virginia-class submarines. The Australian Government announced the milestone on July 29, 2026, describing it as a significant step in expanding Australia's contribution to the trilateral submarine industrial base established under the AUKUS security partnership between Australia, the United Kingdom, and the United States.
The order is also expected to support broader efforts by the United States to strengthen its submarine industrial base by expanding production capacity and improving long-term supply chain resilience for key materials used in submarine construction.
Australian Production of HY80 Steel
The production of the submarine-grade steel is being carried out through a domestic Australian supply chain.
BlueScope Steel manufactures the raw steel plate at its Port Kembla facility in New South Wales. The material is then processed by Bisalloy Steel, based in Unanderra in the Illawarra region, where it undergoes specialized processing and heat treatment to produce the finished HY80 steel.
Bisalloy is Australia's only manufacturer of quenched and tempered high-strength steel plate.
HY80, short for High Yield 80, is a high-strength steel developed for demanding naval applications. It is designed to provide the strength, toughness and weldability required for critical submarine structural components operating in challenging maritime environments.
Qualification Through the DIVQ Program
Before receiving the order, Bisalloy successfully qualified to meet the U.S. Navy's structural steel standards through the Australian Government's Defence Industry Vendor Qualification (DIVQ) Program.
The DIVQ Program helps Australian companies satisfy the strict technical and manufacturing requirements needed to participate in U.S. submarine construction and sustainment programs.
The qualification process involved extensive testing and close collaboration between Bisalloy, BlueScope, the Australian Submarine Agency (ASA), General Dynamics Electric Boat, the U.S. Naval Sea Systems Command (NAVSEA), and the U.S. Navy Direct Reporting Portfolio Manager for Submarines.
Submarine steel production requires strict control over every stage of manufacturing. Each batch must consistently meet specific chemical, mechanical and fracture property requirements. The qualification process confirmed that the Australian supply chain could reliably manage alloy composition, heat treatment, mechanical testing and detailed production records in accordance with U.S. Navy standards.
Support for AUKUS Industrial Cooperation
Australian Minister for Defence Industry Pat Conroy said Australian-made submarine-grade steel will be used in the construction of U.S. Navy Virginia-class submarines for the first time, demonstrating the growing contribution of Australian industry to the AUKUS submarine industrial base.
Conroy said the order provides valuable production experience for Australian industry, supports skilled jobs and helps build the industrial capability needed for Australia's future nuclear-powered submarine program under AUKUS. He added that the achievement creates opportunities for Australian companies to compete for future work while raising domestic technical standards.
Kylie Wright, Head of Workforce and Supply Chain at the Australian Submarine Agency, described the order as a significant achievement for Australian industry. She said it demonstrates that Australian companies can meet the rigorous standards required by one of the world's most advanced submarine programs and reflects the close collaboration across the AUKUS partnership.
Strategic Importance
The United States is expanding capacity across its submarine industrial base and has identified steel supply as a key priority. The inclusion of Australian suppliers is intended to strengthen resilience within the trilateral supply chain while supporting increased submarine production and maintenance requirements.
Rowan Melrose, Managing Director and CEO of Bisalloy Steel Group, said the company's first order for the Virginia-class program represents an important milestone for both Bisalloy and Australian manufacturing. He said the achievement reflects years of work to meet U.S. Navy qualification standards and positions the company to pursue additional opportunities within allied defence supply chains.
The Defence Industry Vendor Qualification (DIVQ) Program forms part of Australia's AUKUS Submarine Industry Strategy, which aims to prepare Australian businesses to meet the standards required for U.S. and UK submarine programs while developing the industrial capability, workforce and skills needed to support Australia's future nuclear-powered submarine enterprise.
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