US Navy Virginia-class submarine, USS North Carolina, docks at the HMAS Stirling port in Rockingham on the outskirts of Perth on August 4, 2023. A US Navy Virginia-class submarine arrived at HMAS Stirling for a scheduled port visit as part of routine patrols in the Indo-Pacific region. (Photo by TONY MCDONOUGH/AFP via Getty Images)
WASHINGTON — The Australian government this week released a new strategy document calling for $30 billion AUD ($19 billion USD) in investment to prepare its domestic industrial base to support future nuclear-powered submarines built through the trilateral security pact AUKUS.
“Developing the ability to build, sustain and operate conventionally-armed, nuclear-powered submarines is also one of the most significant industrial undertakings in Australia’s history,” according to the document. “We plan to achieve an ambitious uplift of Australia’s military and industrial capability, which has never been done under the timeframes of the optimal pathway announced in March 2023.”
The strategy seeks to address four “major hurdles” that the government says it has identified through consultations with industry: uncertainty of demand for goods and services; issues with attracting industrial base investment; regulatory complexity; and workforce shortages.
The Australian government will aim to create 20,000 jobs over 30 years through what the document characterizes as a “whole-of-nation undertaking.”
“The scale, complexity and technology requirements of the program also mean the Australian Submarine Industrial Base will need to work with trusted United Kingdom and United States partners to deliver products and services across the life of the [nuclear-powered submarine] program,” according to the document.
As part of the government’s new strategy, it is also launching a pilot program that will have American submarine builder HII work with Australian companies to qualify those companies and their products for incorporation into the Virginia-class submarine program’s supply chain.
“HII Australia has been awarded a contract to deliver the pilot program over the next two years, with an initial value of $9.6 million and the option to extend based on achievement,” Australia’s Department of Defence said in a March 6 statement.
The pilot will be executed in partnership with H&B Defence, a joint venture between HII and the UK aerospace and defense firm Babcock.
“This contract represents a significant milestone in building a resilient and globally integrated supply chain for nuclear-powered submarines,” said HII President and CEO Chris Kastner said in a statement this week. “HII has a long history of working with suppliers to ensure they meet the highest standards in safety, security, and performance. We welcome Australian partners to help build out this critical nuclear shipbuilding capability and ensure the long-term success of AUKUS.”
In addition to building what has been dubbed “SSN-AUKUS,” Australia is also expected to purchase, maintain and operate either three or five Virginia-class submarines as part of AUKUS.
