Australia to invest $4.7bn for Rolls Royce to expand submarine nuclear reactor manufacturing in UK

Australia will spend $4.7 billion boosting the United Kingdom’s production of nuclear reactors to power the AUKUS submarine fleet.

Australia will spend $4.7 billion boosting the United Kingdom’s production of nuclear reactors to power the AUKUS submarine fleet in a move allies say shows the nation is “serious about security” in a “much more dangerous world”.

The investment over ten years will assist Rolls-Royce Submarines in Derby, England to expand its production capacity and also contribute to Australia’s share of the design costs of the SSN-AUKUS submarines — a hybrid model based on British design with US weapons systems and input from Australia.

The federal government will on Friday also announce domestic shipbuilder ASC will partner with BAE Systems to build the SSN-AUKUS submarines for the Royal Australian Navy in Adelaide, while multiple training pilot programs will be launched to upskill the local workforce.

This includes a “train a trainer” initiative where Australian VET teachers will be sent to the US for training in how to support the next generation of students take up careers in the nuclear-powered submarine pipeline.

Defence Minister Richard Marles and UK secretary of state for Defence Grant Shapps will be in Adelaide on Friday to announce the partnership with BAE and significant investment in the UK’s nuclear-reactor manufacturing capability to ensure RollsRoyce can deliver on schedule.

Deputy Prime Minister and Minister for Defence Richard Marles and Britain's Secretary of State for Defence Grant Shapps will make the AUKUS announcements in Adelaide on Friday. Picture: David Gray/AFP

Mr Shapps said the investment would ensure the AUKUS nations could work closely together to “defend the world order”.

“Nuclear-powered submarines are not cheap, but we live in a much more dangerous world where we are seeing a much more assertive regime in China … in Iran, what’s happening in the Middle East, and Europe,” he said.

Prime Minister Anthony Albanese with Foreign Minister Penny Wong, Britain’s Foreign Secretary David Cameron, British Defence Minister Grant Shapps and Australian Deputy Prime Minister and Defence Minister Richard Marles outside the Lodge ahead of the annual Australia-Britain Ministerial Consultations (AUKMIN) in Canberra. Picture: David Gray/AFP

“Countries need to invest in making sure adversaries see that we’re serious about security, defending freedom of navigation for example.”

Australia’s investment in the UK comes on top of an estimated $40bn spend on domestic industrial upgrades and spending on infrastructure, including at least $2bn to build the new submarine construction year in Osborne, South Australia.

The government has also committed to a $1.5bn upgrade to defence facilities in Western Australia to host UK and US-owned nuclear submarines from 2027.

Meanwhile the United States is spending about $17.2bn to expand its submarine industrial base and the UK is spending $5.7bn on its own nuclear submarine infrastructure.

Los Angeles-class submarine USS Annapolis is a nuclear-powered, conventionally-armed submarine that recently visisted HMAS Stirling. Picture: ADF

Mr Marles said the announcement opened up more avenues for Australian industry and jobs.

“What AUKUS is doing is allowing Australian industry to further invest here, but there are opportunities also opening up with our UK and US partners,” he said.

“There are now multiple new avenues and opportunities for Australian industry, which will expand the defence industrial base across all three countries — and realise the historic opportunities the pathway envisioned when we announced it last year.”

Defence Industry Minister Pat Conroy said the a the announcement would kickstart “unprecedented levels” of science, technology and industrial collaboration between the US, UK and Australia.

“This is a critical step that underscores the Albanese Government’s commitment to maximising opportunities for Australian industry and creating jobs,” he said.

“It ensures construction of Australia’s first SSN-AUKUS submarine can begin in Australia before the end of this decade.”

US Ambassador Caroline Kennedy welcomed the announcement and said it was “nice to partner with close allies” in the UK and Australia.

Originally published as Australia to invest $4.7bn for Rolls Royce to expand submarine nuclear reactor manufacturing in UK