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Rolls-Royce has signed the largest contract in its history with the UK Ministry of Defence (MoD) – the Unity contract spans eight years, uniting all aspects of research and technology, design, manufacturing and in-service support for the nuclear reactors that power the Royal Navy’s submarine fleet and Australia’s own future SSNs.
This agreement between Rolls-Royce Submarines and the UK MoD consolidates these elements into a single, cohesive capability portfolio.
Unity aims to enhance focus on simplification, efficiency and improved outcomes for the UK Royal Navy. It represents a major commitment and investment by the UK government and industry, creating thousands of highly skilled jobs across the nation and ensuring enduring support for decades to come.
Steve Carlier, president Rolls-Royce Submarines, welcomed this generational contract announcement, saying, “We’re delighted to announce the Unity contract, which confirms our commitment to the Royal Navy and the Defence Nuclear Enterprise. This long-term contract enables us to invest in the right skills, equipment and facilities to play our part in protecting UK interests at home and overseas.”
Rolls-Royce designs, builds and maintains all nuclear reactors for the Royal Navy’s submarines. The Unity contract, valued at approximately £9 billion (AU$17.86 billion), will ensure full support for the in-service UK Royal Navy submarine fleet over its duration. It also includes ongoing support for the construction and commissioning of the Dreadnought Class submarines and the commencement of previously announced SSN-AUKUS contracts.
“The Unity contract enables our business to work truly collaboratively with the Ministry of Defence, meeting the evolving needs of the UK Royal Navy, further improving reactor plant design, delivery and in-service support, ensuring the continuing security of our nation at a time of global uncertainty,” Carlier said.
This groundbreaking contract is the first of its kind awarded by the UK MoD and is the result of years of planning between Rolls-Royce and the ministry. It signals a potentially transformative way of working between government and industry, reinforcing the UK’s commitment to a continuous at-sea nuclear deterrent and Rolls-Royce’s dedication to the Royal Navy and the Defence Nuclear Enterprise.
UK Defence Secretary John Healey expanded on the importance of the partnership, saying, “In line with our upcoming defence industrial strategy, this deal with Rolls-Royce, a historic British success story, will support high-skilled UK jobs who equip the thousands of submariners that keep us all safe. We are showing defence can be an engine for growth while also driving better value for taxpayer money.”
With long-term investment in Rolls-Royce Submarine programs, Unity combines current and future projects into a single portfolio, fostering a more collaborative relationship between Rolls-Royce and the MoD.
The Unity contract will create an additional 1,000 roles within Rolls-Royce Submarines by the end of the contract, predominantly in Derby, but also in newly established satellite offices in Glasgow and Cardiff.
Sir Chris Gardner KBE, CEO of the UK’s Submarine Delivery Agency (SDA) said, “The signing of the Unity contract is a key milestone in the SDA and Rolls-Royce partnership, building resilience, collaboration and capability. It will also enable a critical pipeline of homegrown nuclear skills and provides Rolls-Royce with the longer-term contractual security to plan and develop the existing and future workforce.”
Meeting the Royal Navy’s growing demands is a priority for Rolls-Royce Submarines, supported by a highly skilled national workforce. This strengthens resilience, encourages collaboration across the UK’s nuclear industry and nurtures homegrown talent. As demand for nuclear expertise rises in both defence and civil sectors, investing in this talent is crucial for the UK.
“Bringing together existing commercial arrangements, it is a clear signal of our commitment to deliver greater effectiveness, efficiency and agility to meet the needs of the Defence Nuclear Enterprise and support the Royal Navy’s submarines now and into the future," Gardner said.
The Unity contract also brings significant opportunities to the UK supply chain. Developing long-term, strategic relationships with extended lead times enables greater capability, better forward planning and increased competition, delivering enhanced benefits to the UK economy.
