LONDON / CANBERRA, February 24, 2026 : The Australian Government has committed $310 million to acquire long-lead items from the United Kingdom for its future conventionally armed, nuclear-powered submarines under the SSN-AUKUS program, marking a further step in the development of Australia’s sovereign nuclear-powered submarine capability.
The funding will support the manufacture of critical components for the nuclear propulsion systems of Australia’s first two SSN-AUKUS submarines. The submarines are scheduled to be constructed at the planned Submarine Construction Yard in Osborne, South Australia.
Under the AUKUS arrangements, the United Kingdom will deliver complete, welded nuclear propulsion units for the Australian-built submarines. Manufacturing of these propulsion systems is already underway at the Rolls-Royce Submarines facility in Derby. Rolls-Royce Submarines forms a central part of the United Kingdom’s nuclear submarine enterprise and is responsible for producing the pressurised water reactor that will power the SSN-AUKUS boats.
Australian officials stated that securing long-lead items at this stage is necessary to maintain the program schedule, sustain specialist industrial skills and align production timelines across the trilateral AUKUS partnership between Australia, the United Kingdom and the United States. The procurement is also intended to provide greater supply-chain resilience and schedule certainty.
The $310 million payment is separate from Australia’s previously announced commitment of £2.4 billion over ten years to expand production capacity at Rolls-Royce Submarines. That investment is designed to increase the United Kingdom’s ability to meet growing demand associated with both British and Australian submarine programs.
Defence Industry Dialogue in London
The announcement followed Minister for Defence Industry Pat Conroy’s participation in the Australia–United Kingdom Defence Industry Dialogue (AUKDID) held in London on February 23, 2026. The meeting marked the first convening of the dialogue since 2018 and focused on advancing cooperation in submarine industrial base development and broader defence industry collaboration.
Discussions during the dialogue centered on aligning industrial capacity, workforce development and supply-chain integration to support delivery of the SSN-AUKUS capability under AUKUS Pillar 1.
Australian authorities reiterated that all nuclear stewardship arrangements under AUKUS will comply with Australia’s international obligations on nuclear safety, security and non-proliferation.
Domestic Infrastructure and Workforce Expansion
The UK procurement proceeds alongside major domestic infrastructure investment in Australia. The government has allocated an initial $3.9 billion to establish the Submarine Construction Yard at Osborne in South Australia, where the SSN-AUKUS fleet will be built.
Construction of the yard is expected to enable the start of submarine construction before the end of the decade.
At peak activity, up to 4,000 Australian workers are projected to be employed in designing and building the yard’s infrastructure. When submarine production reaches its peak, approximately 5,500 direct jobs are expected to be supported in South Australia for the construction of the nuclear-powered submarines.
The SSN-AUKUS program calls for Australia to acquire at least eight conventionally armed nuclear-powered attack submarines. The design is based on a United Kingdom platform and will incorporate technologies from Australia, the United Kingdom and the United States. The first Australian SSN-AUKUS submarine is planned to enter service in the early 2040s.
As part of preparations for sovereign capability, the Submarine Rotational Force–West is scheduled to be established at HMAS Stirling in Western Australia from 2027. The rotational presence of UK and US nuclear-powered submarines is intended to build Australian operational and maintenance experience ahead of domestic construction and sustainment.
Maintenance Milestone in Western Australia
In a related development, the United Kingdom’s Astute-class submarine HMS Anson is currently undergoing a scheduled maintenance period at HMAS Stirling in Western Australia. This marks the first time a UK nuclear-powered submarine has conducted maintenance in Australia.
Australian and UK officials described the maintenance activity as part of broader efforts to integrate operational, logistical and industrial arrangements under the AUKUS framework.
Official Statements
Deputy Prime Minister Richard Marles stated that early work on critical submarine components is necessary to keep the program on schedule and support the establishment of a sovereign capability. He said the SSN-AUKUS submarines will be designed and built in partnership with trusted allies and powered by a reactor system developed by a company with decades of experience in nuclear propulsion.
Minister for Defence Industry Pat Conroy said Australia continues to work with the United Kingdom and the United States to develop the capabilities, skills and knowledge required to build, operate and maintain nuclear-powered submarines. He stated that early investment in nuclear propulsion components is critical to the delivery of AUKUS and supports defence industry and workforce cooperation across the partnership.
All details are drawn from the official Australian Department of Defence press release dated February 24, 2026, and associated statements issued following the Australia–United Kingdom Defence Industry Dialogue in London.
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