The Australian Government has selected BAE Systems and ASC Pty Ltd. to build Australia's new fleet of nuclear powered submarines in the latest significant development in the AUKUS trilateral security pact between the United States, the United Kingdom and Australia. Under the AUKUS agreement, Australia and the UK will operate a common submarine of the future, incorporating technology from all three nations, based on the UK?s next generation design which BAE Systems is leading. BAE Systems and ASC Pty Ltd. will now bring together their complementary skills, expertise and capabilities under a collaborative arrangement in Australia, ultimately leading to the establishment of a long-term, incorporated Joint Venture.

SSN-AUKUS will be the largest, most powerful and advanced attack submarines the Royal Navy has ever operated and will start to replace the Astute class, which BAE Systems is building at its site in Barrow-in-Furness in the North West of England, from the late 2030s. Australia expects to deliver its first SSN-AUKUS submarine in the early 2040s. The UK Ministry of Defence awarded BAE Systems almost £4 billion for the next phase of the SSN-AUKUS programme in October.

The funding covers development work through to 2028, enabling BAE Systems to progress the detailed design phase of the programme and procure long-lead items. The award is also funding significant infrastructure investment in Barrow, which will see the site's facilities double in size from 80,000 to 160,000 m2 by the late 2030s, as part of a multi-billion pound programme, and continued recruitment to support the national endeavour. BAE Systems has already increased its UK submarines workforce to 13,500 with plans to grow to around 17,000 at its peak to support SSN-AUKUS in the UK, as well as the Astute and Dreadnought programmes, providing a significant employment boost for the region.