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Deputy Prime Minister and Defence Minister Richard Marles and Defence Industry and Capability Delivery Minister Pat Conroy have announced $262 million to boost the industrial capability of Australian defence industry seeking to participate in the nuclear-powered submarine supply chain.
This $262 million marks the next milestone in one of the most ambitious industrial projects in Australian history. Local industry and jobs will take centre stage in building and maintaining the next generation of conventionally armed, nuclear-powered submarines. Australian businesses will also play a key role in strengthening supply chains between Australia, the UK and the US.
Over the next two years, the Albanese government will roll out a range of initiatives to support around 125 businesses nationwide, helping them enhance their capabilities to meet the demanding standards required for AUKUS submarine projects.
Deputy Prime Minister Marles said, “We are continuing to build and invest in an Australian submarine industrial base capable of supporting our future nuclear-powered submarine fleet and underpinning a strong local economy over the coming decades.”
This funding includes new initiatives and boosts to existing programs, with the first phase focusing on:
- Defence Industry Development Grants Program: Offering targeted investment to Australian businesses aiming to join the AUKUS submarine supply chain. Funding will support security upgrades, skills development, international accreditations and the purchase of manufacturing equipment for defence supply chains at home and abroad.
- Global Supply Chain Program: Expanding opportunities for Australian businesses to collaborate with major UK and US submarine suppliers, increasing participation in trilateral supply chains.
- Defence Industry Vendor Qualification Program: Accelerating the qualification of Australian-made products – such as mechanical assemblies, castings, and electromechanical components – for US submarine supply chains. This includes working with AUKUS partners to streamline processes and reduce regulatory hurdles for Australian businesses.
“The momentum we are building for Australia’s conventionally armed, nuclear-powered submarine program is exemplified by the workforce we continue to build and the growing opportunities for Australian industry,” the Deputy Prime Minister added.
This investment coincides with the AUKUS Naval Nuclear Propulsion Agreement, which came into effect last August. The agreement paves the way for the transfer of Virginia Class submarines from the US to Australia from the 2030s, along with critical information and equipment from the UK for Australia’s SSN-AUKUS submarines.
Minister Conroy expanded on the comments made by the Deputy Prime Minister, saying, “The Australian government continues to work in a targeted way with our AUKUS partners and Australian industry to get Australian products into UK and US supply chains. These additional investments by the Albanese government are further supporting Australian industry by enhancing access, building skills and bolstering commercial opportunities.”
The agreement reaffirms the AUKUS partners’ commitment to upholding the highest non-proliferation standards, aligning with Australia’s international obligations. The Albanese government’s investment in AUKUS promises significant opportunities for Australian industry, infrastructure and jobs.
“Our commitments highlight the pivotal role of Australian industry in driving progress not just for our own conventionally armed, nuclear-powered submarines, but for the fleets of our AUKUS partners as well,” Minister Conroy added.
Further information for Australian businesses to access these opportunities will be available on the Australian Submarine Agency website, you can register your interest here: https://www.asa.gov.au/business-industry.
