AUKUS has announced a payment of US$220.1 million to the United Kingdom for the acquisition of long-lead items intended for Australia’s future conventionally armed, nuclear-powered submarines.
The investment is part of the strategic cooperation between Australia, the United Kingdom, and the United States under the trilateral security pact.
The funds will finance the manufacture of critical components for the nuclear propulsion systems that will equip Australia’s first two SSN-AUKUS submarines. The vessels will be built in Osborne, in the south of the country, while the United Kingdom will be responsible for delivering the complete, welded nuclear propulsion units. Production is already underway at Rolls-Royce Submarines in Derby, strengthened by a previous Australian commitment of US$3.26 billion over ten years to expand the company’s industrial capacity.
Deputy Prime Minister and Minister for Defence Richard Marles emphasized that early investment in nuclear propulsion systems is essential to ensure the AUKUS program schedule. According to him, cooperation among the three countries also strengthens the defense industry and contributes to the creation of skilled jobs in Australia over the coming decades.
During the Australia–United Kingdom Defence Industry Dialogue in London, Minister for Defence Industry Pat Conroy stated that starting early production of essential components is decisive to maintaining the project’s momentum. The announcement follows the Australian government’s confirmation of an additional US$2.77 billion investment for the new submarine construction shipyard in Osborne, where work is expected to begin before the end of the decade. At peak activity, at least 4,000 workers are expected to be employed in the shipyard infrastructure, along with 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
