LONDON — The United Kingdom plans to invest approximately £6 billion during the current Spending Review period to expand its nuclear submarine industrial capacity and establish a production rate of one SSN-AUKUS attack submarine every 18 months.
The plan, outlined in the Defence Nuclear Enterprise 2026 Annual Update to Parliament, is designed to allow Britain to build SSN-AUKUS submarines alongside the four-boat Dreadnought-class ballistic-missile submarine programme.
Expanding Production Capacity
The investment will focus on BAE Systems’ submarine shipyard at Barrow-in-Furness, Rolls-Royce Submarines’ Raynesway facility near Derby, and specialist suppliers across the submarine supply chain.
At Raynesway, construction has begun on the Primary Components and Operations Facility. The site is also receiving improved access infrastructure and advanced prototyping facilities to support a larger engineering and manufacturing workforce.
At Barrow, the concept design for SMITE2, a new submarine propulsion testing facility, was completed in early 2026. The facility will provide additional engine and machinery assessment capacity required for the planned 18-month production cycle. Preparatory work at Ramsden Dock is also progressing.
The wider modernisation programme includes digital design systems, advanced production technologies and new training centres. Investment is also being directed to companies involved in propulsion systems, electrical switchgear and precision engineering to expand their capacity and meet higher demand.
SSN-AUKUS Production Timeline
The SSN-AUKUS is a nuclear-powered, conventionally armed attack submarine being developed by the UK, Australia and the United States under the AUKUS partnership. British submarines will be built at Barrow, while Australia will build its own submarines at Osborne Naval Shipyard in South Australia. Rolls-Royce will manufacture the nuclear reactors for the UK and Australian fleets at Raynesway.
The UK plans to operate up to 12 SSN-AUKUS submarines, which will eventually replace the Royal Navy’s seven-boat Astute-class fleet. The exact number of British boats to be ordered has not yet been finalized, with a decision expected before the programme’s Detailed Design and Long Lead phase ends in 2028.
Steel cutting for the first British SSN-AUKUS submarine is planned for 2027, with entry into Royal Navy service targeted for the late 2030s.
Contracts worth approximately £4 billion have already been placed for early submarine design and production infrastructure.
New Submarine Production Alliance
Britain is also establishing a Submarine Production Alliance involving the Ministry of Defence, BAE Systems, Rolls-Royce Submarines and Babcock. The group will help coordinate the concurrent submarine programmes and support the planned continuous production rate.
The investment is intended to expand the UK's shipbuilding, reactor manufacturing and specialist supply-chain capacity while supporting production of both future attack submarines and the country's nuclear deterrent fleet.
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