The Australian Government is set to invest $262 million to boost local defence industry and develop the AUKUS nuclear-powered submarines supply chain.
This move is set to support jobs that are at the forefront of the build and sustainment of our next generation of conventionally armed, nuclear-powered submarines and grow resilient supply chains between Australia, the United Kingdom and the United States.
The Government will fund a range of initiatives to uplift our local defence industry, supporting around 125 businesses across Australia in the next two years.
This includes new initiatives and boosts support for existing programs. The first tranche of funding will support the industry through:
- The Defence Industry Development Grants Program: further investment into eligible Australian businesses intending to participate in the AUKUS submarine supply chain to receive timely uplift funding for security, skills, international accreditations and manufacturing capital equipment for defence domestic or export supply chains.
- The Global Supply Chain Program: expanding the program to support major UK and US submarine industry suppliers to provide commercial opportunities for Australian suppliers and increase Australian participation in trilateral supply chains.
- The Defence Industry Vendor Qualification Program: expanding and accelerating the qualification of Australian products (including, mechanical assemblies, castings, forgings, electro-mechanical components) into US submarine supply chains. This includes working with AUKUS partners to streamline processes and reduce regulatory friction for Australian business.
This investment comes as the AUKUS Naval Nuclear Propulsion Agreement, signed last in 2024, enters into force.
“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,” says Deputy Prime Minister, the Hon Richard Marles MP.
“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,” says Minister for Defence Industry and Capability Delivery, the Hon Pat Conroy MP.
“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.”
The Agreement will enable the transfer of Virginia-class submarines from the US to Australia from the 2030s, as well as the transfer of information and equipment from the UK for use in Australia’s SSN-AUKUS submarines.