UK Awards $4.9 Billion Contract For Nuclear-Powered Attack Submarines Under AUKUS Program

The United Kingdom has awarded a £4 billion ($4.9 billion) contract to three UK companies – BAE Systems, Rolls-Royce, and Babcock – to design and manufacture a nuclear-powered attack submarine as part of the AUKUS program with Australia and the United States.

The UK Ministry of Defence announced the contract, stating that it represents a significant milestone for both the UK and the trilateral AUKUS program.

The new submarines, referred to as SSN-AUKUS, are expected to become the largest, most advanced, and most powerful attack submarines ever operated by the Royal Navy. They will combine world-leading sensors, design, and weaponry in a single vessel.

The first SSN-AUKUS submarines are scheduled to enter service in the UK in the late 2030s, followed by the first Australian submarines in the early 2040s.

Plans for SSN-AUKUS were unveiled in March by the leaders of Australia, the UK, and the US as part of their efforts to bolster their presence in the Asia Pacific region, particularly countering China’s influence.

These nuclear-powered submarines mark the first time that Washington has shared nuclear-propulsion technology with a country other than the UK.

They represent a significant upgrade to Australia’s current diesel-powered submarine fleet. Australian Defence Minister Richard Marles described the AUKUS deal as “the biggest step forward in our military capability that we’ve had since the end of World War II.”

Under AUKUS, the US also plans to sell up to five of its Virginia-class nuclear-powered submarines to Australia in the early 2030s.

Additionally, US and UK submarines will be deployed in Western Australia by 2027 to assist in training Australian crews.

Analysts view the AUKUS program as strengthening deterrence against China’s assertive actions in the Pacific, including its military presence in the South China Sea, where it has constructed military bases on disputed islands and reefs.

The highly stealthy SSNs are capable of operating in contested waters, hunting Chinese warships and submarines, controlling strategic sea lanes, and projecting power with long-range cruise missiles.

China has criticized AUKUS as an illegal act of nuclear proliferation, accusing the participating countries of pursuing their own geopolitical interests to the detriment of regional stability and peace.

China views the pact as a manifestation of a “Cold War mentality” that could potentially lead to an arms race.