Australia has committed 4.6 billion Australian dollars to support the construction of nuclear-powered submarines in collaboration with British industry. This decision follows the signing of a defense and security pact between the two countries aimed at addressing challenges posed by China's activities in the South China Sea and South Pacific.
The U.K. Defense Minister emphasized the necessity of the submarine program in the current global landscape, citing increased threats and the importance of demonstrating a commitment to security and freedom of navigation.
The 10-year agreement will see an expansion of capacity at the Rolls-Royce factory in Derby, U.K., to manufacture nuclear reactors for the submarines, which will be built by BAE Systems in Adelaide, Australia. The submarines, based on a U.K. design, will be equipped with a U.S. weapons system.
Australia's Defense Minister highlighted the significance of the partnership, stating that it will not only ensure the fulfillment of the nuclear submarines program but also lead to the development of advanced manufacturing capabilities for the AUKUS partners.
Under the AUKUS agreement, Australia is set to acquire at least three U.S. nuclear submarines starting from the early 2030s. This procurement is described as a long-term partnership between the three governments, aimed at establishing a cutting-edge industrial production line within Australia.
