The Australian Government has announced a contract under which South Australian company PMB Defence will collaborate with BAE Systems in the UK.
This agreement will explore the inclusion of PMB Defence’s nickel-zinc battery system in the design of future conventionally armed, nuclear-powered submarines under the trilateral AUKUS alliance.
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AUKUS, announced in September 2021, is a defence and security partnership between Australia, the UK, and the US.
PMB Defence will also provide battery systems for other Royal Navy submarines as part of contracts worth over A$34m ($22m).
In preparation for the project, the company has added 20 employees in South Australia, with plans to hire more staff as production demands increase.
This growth adds to the 450 jobs created at BAE and Australian sovereign submarine builder ASC since the AUKUS programme began.
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By GlobalDataThe latest contract follows extensive coordination between the Australian Submarine Agency, PMB Defence, and the UK Ministry of Defence.
It will expedite the introduction of Australian products into submarine supply chains in both the UK and the US.
PMB Defence currently manufactures battery systems for Collins-class submarines, which have been in service with the Royal Australian Navy since 1996.
If selected following the design phase, PMB Defence’s battery technology would be produced at its South Australian facility, increasing local manufacturing output.
The next generation SSN-AUKUS submarines are being developed jointly by Australia, the UK and the US.
The design is based on a UK model and will incorporate propulsion plant systems and components from US partners, a common vertical launch system and conventional weapons.
The AUKUS partners will also develop a joint combat system that expands on an existing arrangement between Australia and the US.
Australia Minister for Defence Industry Pat Conroy said: “The contract for the AUKUS design, which comes on the back of work PMB has secured for other Royal Navy submarines, will create dozens of new well-paid high-skilled jobs for locals, on top the hundreds at BAE and ASC that AUKUS has already delivered.
“AUKUS is expected to create around 20,000 direct jobs over the next 30 years, and the Albanese Government is committed to making it easier for Australian industry to tap into a multi-billion-dollar, multi-decade opportunity.”
In June 2025, the UK Ministry of Defence revealed plans to invest £15bn ($20bn) in its continuous at sea nuclear deterrent. Separately, the UK government pledged to expand its conventionally armed, nuclear-powered submarine fleet under AUKUS alliance.
