BAE Systems selected to build AUKUS nuclear submarines

The Australian government has selected BAE Systems and alongside domestic manufacturer ASC to build Australia's new fleet of nuclear-powered submarines.

This is in the latest significant development in the AUKUS trilateral security pact between the US, UK and Australia.

Australian deputy prime minister, Richard Marles, and UK defence secretary, Grant Shapps, announced the news in Australia, marking the next step in the pathway for Australia to build and operate its own nuclear powered submarines.

Under the AUKUS agreement, Australia and the UK will operate a common submarine of the future, incorporating technology from all three nations, based on the UK’s next generation design which BAE Systems is leading.

BAE Systems and ASC will now bring together their complementary skills, expertise and capabilities under a collaborative arrangement in Australia, ultimately leading to the establishment of a long-term, incorporated joint venture.

Charles Woodburn, BAE Systems chief executive, commented: “Our selection as a partner in Australia, alongside ASC, recognises our role as the UK’s long-term submarine design and build partner and as a key player in Australia’s maritime enterprise and wider defence landscape.”

The submarines, called SSN-AUKUS, will be the largest, most powerful and advanced attack submarines the Royal Navy has ever operated and will start to replace the Astute class, which BAE Systems is building at its site in Barrow-in-Furness in the North West of England, from the late 2030s.

SSN is the US Navy hull classification symbol for such vessels; SS indicates a submarine, and the N is for nuclear power. Australia expects to deliver its first SSN-AUKUS submarine in the early 2040s.

The UK Ministry of Defence awarded BAE Systems almost £4bn for the next phase of the SSN-AUKUS programme in October. The funding covers development work through to 2028, enabling BAE Systems to progress the detailed design phase of the programme and procure long-lead items. The award is also funding significant infrastructure investment in Barrow, which will see the site's facilities double in size from 80,000 to 160,000 m² by the late 2030s, as part of a multi-billion-pound programme, and continued recruitment to support the national endeavour.

BAE Systems has already increased its UK submarines workforce to 13,500 with plans to grow to around 17,000 at its peak to support SSN-AUKUS in the UK, as well as the Astute and Dreadnought programmes, providing a significant employment boost for the region.

BAE Systems has already delivered five of seven Astute class submarines to the Royal Navy in the UK, with the remaining two boats at advanced stages of construction at its shipyard in Barrow-in-Furness. The company is also designing and building the UK's next-generation nuclear deterrent submarines, Dreadnought, with construction underway on the first three of four new boats.

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