Australia has announced an AUS 310 million payment to acquire long-lead items from the United Kingdom for Australia’s future conventionally armed, nuclear-powered submarines under the AUKUS partnership.
The funding will support the manufacture of critical components for nuclear propulsion systems destined for Australia’s first two SSN-AUKUS submarines, which are to be built at Osborne in South Australia. Under current arrangements, the United Kingdom will deliver complete, welded nuclear propulsion units for the Australian-built boats, with work already under way at Rolls-Royce Submarines in Derby. This adds to Australia’s previously committed contribution of £2.4 billion over ten years to expand Rolls-Royce’s production capacity.
Deputy Prime Minister and Defence Minister Richard Marles said Australia continues to work closely with the United Kingdom and United States to develop the skills and industrial base required to operate nuclear-powered submarines.
“Early investment in components such as the nuclear propulsion systems will be critical to the delivery of AUKUS,” Mr Marles said.
“By working with our AUKUS partners, the Albanese Government continues to support defence industry and workforce cooperation, which will in turn support jobs in Australia for generations to come.”
The payment was announced alongside Minister for Defence Industry Pat Conroy’s engagement at the Australia–United Kingdom Defence Industry Dialogue in London, the first such meeting since 2018. The talks focused in part on submarine industrial cooperation.
Mr Conroy said beginning work early on key submarine components was essential to maintaining programme momentum. “Starting work early on critical submarine components is essential to keeping this program on track. The next-generation SSN-AUKUS submarines will be an extraordinary capability, designed and built by trusted partners and powered by a company with decades of nuclear-propulsion experience,” he said.
He added that Australia’s investment was helping to establish a sovereign submarine-building capability. “Australia’s investment is helping to lay the foundations for a sovereign capability that will keep Australians safe for decades to come. This is a concrete example of allied industrial capacity delivering real benefits for Australia.”
The announcement follows the government’s recent A$3.9 billion commitment as a down payment for the new Submarine Construction Yard at Osborne, where construction of SSN-AUKUS boats is planned to begin before the end of the decade. At peak activity, at least 4,000 workers are expected to be employed in building the yard infrastructure, with around 5,500 direct jobs forecast for submarine construction in South Australia.
Yeah, I thought they’d do this soon, given the UK did this earlier in 2025.
Australian government quoted costs for everything are insane, $30 billion for a ship yard. $300 billion for 8 SSN’s or $90billion for the previous 12 SSK’s the French were building them.
Yesterday they signed a contract with Austel for $4 billion for 8 landing ships that the Netherlands sells for $100 million a piece.
The Australian government either really needs to work on its media communications strategy or it needs to stop ship yard workers showing in Dom Perignon and driving Bentleys.
That’s the point . The French were not building 12 SSKs . Six years after the signing of the contract the French hadn’t even cut the first steel.
We should probably hold off on that argument until we see whether the American submarines arrive in a timely fashion.
The basic unit cost of calculation for these 8 vessels is $500 million AUD per hull (or $350 million USD). A US Congessional Budget Office projection for a class of 35 LSMs had estimates of $340 to $430 Million USD per hull. The US has now also adopted the same Damen 100 design as the basis for their build with unit costs estimated at least $150 million depend on the extent of customization for the U.S. (cough Constellation Class cough).
Australian costs are likely to be higher because we pay a ‘sovereign premium’ for any ships built in Australia- smaller economies of scale, smaller ship yards, higher wages for a smaller pool of skilled workers, less choice in local supply chains etc.
Also this may include an allowance for inflation over the 12 year life of the build program plus some allowance for customization of the design for the ADF and an indirect contribution to local industry and workforce development.
4 billion AUD = 2.83 billion USD
for 8 landing craft heavy (LCH).
The Australian government is a bit bonkers on it’s costs in that it gives an estimate for everything across the whole life.. and adds 30 years of inflation.. it’s why the Australian taxpayer always thinks they are being ripped off
Note to ‘Straya, keep spares away spares the Brits, we have form for nicking stuff of later build subs to replace parts on early build.
Will there be a design change to this boats to include a BBQ enclosure on the casing?