In signing the landmark GBP 9 billion (EUR 10.7 billion) Unity contract, which covers all aspects of research and technology, design, manufacture and in-service support of the nuclear reactors that power the UK Royal Navy’s current and future fleet of submarines, Rolls-Royce has secured the largest ever contract with the UK Ministry of Defence (MoD) in its history.

The deal was announced on 24 January 2025 by UK Defence Secretary John Healey during a visit to Rolls-Royce’s nuclear reactor production facility in Derby.

Alongside creating and maintaining 5,000 long-term UK jobs, the agreement also “streamlines previous contracts and incentivises more efficient delivery, resulting in better value for money for the taxpayer through savings of more than GBP 400 million over the eight-year contract”, the MoD stated in a press release.

“As part of our national endeavour to maintain a continuous at-sea deterrent, this agreement will help streamline decision-making and foster the kind of close partnership between industry and government that is essential to our success,” the UK MoD added.

The agreement reinforces the UK government’s commitment to the ‘triple-lock’ on the UK nuclear deterrent, which covers: the building four new Dreadnaught-class nuclear-powered ballistic missile submarines (SSBNs) in Barrow-in-Furness to replace the current Vanguard-class SSBNs; maintaining the UK’s continuous at-sea deterrent with the Vanguard class; and delivering all future upgrades needed for those submarines.

Rolls-Royce designs, builds and maintains all of the nuclear reactors that power the Royal Navy’s fleet of nuclear-powered attack and ballistic missile submarines. The eight-year Unity contract will provide full support of the Royal Navy’s in-service submarine fleet throughout the period, continued support of the build and commission of the Dreadnought-class SSBNs and supports the beginning of previously announced nuclear-powered submarine plans under the strategic SSN-AUKUS contracts agreed with the United States and Australia.

“The contract is the first of its kind awarded by the UK MoD and is the culmination of years of planning between Rolls-Royce and UK MoD, potentially creating a new way of doing business between government and industry,” Rolls-Royce stated in a press release. “It signposts the UK’s commitment to the continuous at-sea nuclear deterrent and Rolls-Royce’s continuing dedication to the UK Royal Navy and the Defence Nuclear Enterprise.”

A CGI of a future Dreadnought-class SSBN. The landmark GBP 9 billion Unity contract is Rolls-Royce’s largest ever contract with the UK MoD. (Image: Crown Copyright)