The Australian government has selected Australia’s ASC to join BAE Systems in building the country’s new fleet of nuclear-powered attack submarines (SSNs) in the latest significant development in the AUKUS trilateral security pact agreed between the United States, the United Kingdom and Australia in September 2021.
Australian Deputy Prime Minister Richard Marles and UK Defence Secretary Grant Shapps announced the news in Australia on 21 March 2024, marking the next step in the pathway for Australia to build and operate its own submarines under the SSN-AUKUS programme.
Under the AUKUS agreement Australia and the UK will operate a common future submarine, incorporating technology from all three nations, based on the UK’s next-generation design, on which BAE Systems is leading.
BAE Systems and ASC Pty Ltd 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.
“We’re extremely proud of our role in the delivery of this vitally important, tri-nation submarine programme,” BAE Systems Chief Executive Charles Woodburn was quoted as saying in a company press release. “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. Drawing on decades of experience in the UK and Australia, we look forward to working with ASC to develop an enduring, sovereign nuclear-powered submarine building capability for Australia.
“We’re already making good progress on the design and development of the next-generation submarine in the UK, where we have more than 1,000 people working on the SSN-AUKUS programme and major infrastructure investment underway,” Woodburn added. “This latest step will ensure an integral connection between the UK design and the build strategy development in Australia as we work together to deliver next generation military capability as well as considerable social and economic value to all three nations.”
The appointment of a builder by Australia comes a year after UK Prime Minister Rishi Sunak, Australian Prime Minister Anthony Albanese and US President Joe Biden met in San Diego, where they announced that the first generation of AUKUS submarines would be based on a UK design.
“The partnership has carried out extensive engagement with the International Atomic Energy Agency, with all countries committed to developing an approach that protects classified information and strengthens the global non-proliferation regime,” the UK MoD stated in a 21 March press release.
The SSN-AUKUS class will be the largest, most powerful and advanced attack submarines the Royal Navy (RN) has ever operated and will start to replace its Astute-class SSNs, which BAE Systems has been building at its site in Barrow-in-Furness in the northwest of England. Four Astute-class boats are currently operational, with another working towards operational status and the final two under construction.
The SSN-AUKUS submarines will enter RN service from the late 2030s, while Australia expects to deliver its first SSN-AUKUS boat in the early 2040s.
The UK Ministry of Defence awarded BAE Systems almost GBP 4 billion (EUR 4.66 billion) for the next phase of the SSN-AUKUS programme in October 2023. That 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 is also designing and building the UK’s next-generation nuclear-powered ballistic missile submarines, the Dreadnought class, with construction underway on the first three of four new boats.
