Concept art of a future UK Royal Navy Dreadnought Class nuclear-powered ballistic missile submarine (Rolls Royce)
BELFAST — British engine manufacturer Rolls-Royce has received its largest ever contract from the UK Ministry of Defence (MoD), valued at $11.1 billion, for the design, manufacture and support of Royal Navy nuclear submarine reactors.
The new eight-year deal, dubbed by London in a statement today as a “Unity” contract, will enhance the UK’s continuous at sea deterrent (CASD) and strengthen the AUKUS trilateral partnership.
Maria Eagle, UK minister for defence procurement told lawmakers, “It’s a contract that will help Rolls-Royce operate in a more integrated and efficient way, driving efficiencies, reducing waste, saving more than £400 million, and delivering on the government’s commitment to provide value for money for the taxpayer.”
UK Defence Secretary John Healey said in the MoD statement, “National security is a foundation of our government’s plan for change, and this is a clear demonstration of our commitment to the UK’s nuclear deterrent, which is our ultimate insurance policy in a more dangerous world.”
Britain’s deterrent is singular in nature, meaning its nuclear strike capability is submarine based only, as opposed to the ability to deploy ground or air launched weapon systems like other nuclear powers.
CASD is currently supported by a fleet of Royal Navy Vanguard Class nuclear-powered ballistic missile submarines (SSBNs) fitted with Trident 2 D5 missiles, but will be replaced by four new Dreadnought Class vessels in the 2030s.
The future submarine program is expected to cost £31 billion (38.4 billion), excluding a £10 billion contingency fund. Each of the new Dreadnought Class platforms will also be armed with Trident weapons and four Spearfish medium-range torpedoes.
In a supporting statement, Rolls-Royce noted that the Unity contract will include “continued support of the build and commission of Dreadnought Class submarines and the beginning of the previously announced SSN-AUKUS contracts.”
The manufacturer has committed to expanding its nuclear reactor production facility in Derby, England, equivalent to “almost double” the size of the current site, as a result of demand from the Royal Navy and AUKUS, according to a company statement.
In 2023, the UK awarded AUKUS Detailed Design and Long Leads (D2L2) phase contracts, amounting to £4 billion to Rolls Royce and British manufacturing counterparts BAE Systems and Babcock.
The funding was allocated to support design and prototyping activities and to enable contractors to acquire long lead items for future UK submarines due to replace Astute-Class (SSN) vessels from the late 2030s.
New Royal Australian Navy SSNs are set to follow from 2040 on, before which the US will deliver three Virginia-class types to Australia and potentially an additional two units. Canberra is replacing Collins-class diesel-electric subs.
SSN-AUKUS vessels are set to be integrated with technology from all three partner nations. They are also based on a next generation design from BAE Systems. The firm and Australia’s ASC Pty were selected in March 2024 to manufacture the Australian set of subs.
