The Australian Government has announced a payment of A$310m ($218m) to procure long lead items from the UK to aid the development of Australia’s conventionally armed, nuclear-powered submarines.
The procurement will enable the manufacture of essential components, including the nuclear propulsion systems, for the first two SSN-AUKUS submarines at Osborne in South Australia.
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SSN-AUKUS refers to conventionally armed, nuclear-powered submarines being built for the UK and Australian navies under the Australia-UK-US (AUKUS) trilateral agreement signed in September 2021.
As part of the AUKUS programme, the UK will supply fully assembled, welded nuclear propulsion systems for use in Australian-built SSN-AUKUS vessels.
Work on these reactor units is already taking place at the Rolls-Royce Submarine facility in Derby, UK.
A statement from the Australian Government on 24 February 2026 indicates that procuring long lead items at this stage will support project scheduling, enhance supply chain resilience, and demonstrate compliance with international standards for nuclear safety, security, and non-proliferation.
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By GlobalDataAustralia Deputy Prime Minister Richard Marles said: ““Early investment in components such as the nuclear propulsion systems will be critical to the delivery of AUKUS.
“By working with our AUKUS partners, the Albanese Government continues to support defence industry and workforce cooperation, which will in turn support jobs in Australia for generations to come.”
The latest funding is separate from Australia’s prior commitment of £2.4bn over a decade to help expand Rolls-Royce Submarines’ manufacturing capacity.
The announcement was made following Australian Defence Industry Minister Pat Conroy’s participation in the Australia-United Kingdom Defence Industry Dialogue (AUKDID) in London on 24 February 2026.
The event marked the first such meeting since 2018 and focused on collaboration across submarine industrial bases between both countries.
This development follows a recent decision by the Australian Government to invest A$3.9bn towards constructing a new Submarine Construction Yard in Osborne.
The government expects that this infrastructure will enable work on SSN-AUKUS submarines to commence before 2030.
During peak activity, over 4,000 Australians are forecast to be involved in constructing associated shipyard infrastructure, with an estimated 5,500 jobs anticipated during peak submarine production in South Australia.
Australia Defence Industry, Minister Pat Conroy said: “Australia’s investment is helping to lay the foundations for a sovereign capability that will keep Australians safe for decades to come. This is a concrete example of allied industrial capacity delivering real benefits for Australia.
“Together with our record investment at Osborne in South Australia, this demonstrates Australia is serious about building a safe, secure and enduring submarine capability that contributes to regional stability and delivers tangible benefits for Australian workers and businesses.”
In related activity, HMS Anson, an Astute-class submarine from the UK, is presently undergoing maintenance at HMAS Stirling in Western Australia, the first such maintenance period for a UK nuclear-powered submarine in-country.
