The Federal Government has announced a $19 million investment to help more Australian manufacturers join the United States submarine supply chain through the Australian Submarine Supplier Qualification (AUSSQ) Pilot program.
The program, designed to help local companies meet US standards and gain supplier approval with American defence giant HII, aims to strengthen Australia’s industrial base as part of the AUKUS security partnership.
An initial $9.6 million contract was awarded to HII Australia in March 2025 to deliver the pilot phase of AUSSQ. The government has now added a further $9.3 million for additional work packages, expanding the program’s focus from castings, forgings and precision machining to new areas including air and gas flasks, and fabricated parts.
Delivered by H&B Defence – a joint venture between HII and Babcock – the AUSSQ program has already engaged 22 Australian companies, with eight now fully qualified suppliers: MacTaggart Scott Australia, Levett Engineering, Century Engineering, H E Parts International, Veem, Hofmann Engineering, Dobbie, and MTA.
Three of these businesses – Hofmann Engineering, Veem and Axiom – have also been invited to quote for work within the US supply chain, marking early commercial success for the initiative.
AUSSQ complements the Defence Industry Vendor Qualification Program (DIVQ) and forms part of a broader push to build sovereign manufacturing capability and boost defence industry collaboration with allied nations.
Minister for defence industry Pat Conroy said the investment would help create jobs and strengthen national security.
“AUKUS is delivering real benefits for Australian industry and jobs,” Conroy said. “This program is helping build a strong, sovereign submarine enterprise that will keep Australia safe for decades to come.”
“This $19 million investment is helping Australian businesses break into global supply chains and contribute to allied industrial capacity. It’s about creating jobs, growing skills, and giving our manufacturers a chance to compete on the world stage.”
