AUKUS has announced a $220.1 million payment to the UK for the long-term acquisition of components for Australia’s future conventionally armed, nuclear-powered submarines.
The investment is part of strategic cooperation between Australia, the UK and the US under the Trilateral Security Compact.
The resources will fund the production of critical components for the nuclear propulsion systems that will equip Australia’s first two SSN-AUKUS submarines. The units will be built in Osborne, in the south of the country, while the UK will be responsible for delivering the complete, welded nuclear propulsion units. Production is already underway at Rolls-Royce Submarines in Derby, bolstered by an earlier Australian commitment of $3.26 billion over ten years to expand the company’s industrial capacity.
Deputy Prime Minister and Defense Minister Richard Marles stressed that early investment in nuclear propulsion systems is critical to ensuring the AUKUS program timetable is met. According to him, cooperation between the three countries also strengthens the defense industry and contributes to the creation of skilled jobs in Australia in the coming decades.
During the Australia–UK Defense Industry Dialogue in London, Minister for Defense Industry Pat Conroy said starting production of key components early was critical to maintaining the pace of the project. The announcement follows the Australian Government’s confirmation of an additional $2.77 billion investment in the new submarine shipyard at Osborne, where work is expected to begin before the end of the decade. At peak activity, at least 4,000 workers are expected in the shipyard’s infrastructure and around 5,500 direct jobs in submarine construction in South Australia.
Source: UK Defence Journal | Photo: X @DefenceAust | This content was created with the help of AI and reviewed by the editorial team
HMS Anson has arrived at HMAS Stirling, marking the first-ever UK nuclear powered submarine maintenance conducted in Australia and another major milestone on the AUKUS Optimal Pathway.
Over the coming weeks, 🇦🇺, 🇬🇧 and 🇺🇸 personnel will work together on the Astute class… pic.twitter.com/CCdcJ8Q4hd
— Defence Australia (@DefenceAust) February 23, 2026
