Albanese Government announces acquisition of long-lead items for AUKUS nuclear propulsion systems

The Albanese Government has announced a $310 million payment for the acquisition of long‑lead items from the United Kingdom to support Australia’s future sovereign conventionally‑armed, nuclear‑powered submarine capability.

Today’s announcement will directly support the manufacture of critical components for nuclear‑powered submarines which will be built at Osborne in South Australia, including the nuclear propulsion systems of Australia’s first two SSN-AUKUS. 

Under the AUKUS program, the United Kingdom will deliver complete, welded nuclear propulsion systems for Australian‑built SSN‑AUKUS boats, with work already underway at the Rolls‑Royce Submarine facility in Derby. Early progress on reactor manufacturing is essential to maintaining program momentum, sustaining specialist skills, and align industrial schedules across the AUKUS partnership.

This investment is in addition to Australia’s contribution of GBP 2.4 billion over 10 years to expand the production capacity of Rolls-Royce Submarines.  

This announcement follows Minister Conroy’s engagement at the Australia-United Kingdom Defence Industry Dialogue (AUKDID) which was held in London today. AUKDID – which was held for the first time since 2018 – provided an important opportunity to build on areas of shared interest between Australia and the United Kingdom, including submarine industrial base cooperation.

Industrial cooperation between Australia and the United Kingdom is key to AUKUS and a shared commitment to delivering a safe, secure and enduring submarine capability. Rolls‑Royce Submarines is a cornerstone of the UK’s nuclear submarine enterprise and a key partner in the delivery of SSN‑AUKUS.

By securing long‑lead items now, Australia is ensuring schedule certainty, and strengthening supply‑chain resilience. It also reflects Australia’s commitment to the highest standards of nuclear safety, security, and non‑proliferation, consistent with international obligations and best practice.

The visit follows the Australian Government’s recently announced investment of AUD $3.9 billion as a down payment to deliver the new Submarine Construction Yard in Osborne. This critical investment ensures sovereign capability for conventionally‑armed, nuclear-powered submarines enabling the start of construction of the SSN-AUKUS nuclear-powered submarines by the end of the decade as planned.

At its peak, at least 4,000 Australian workers will be employed to design and build the infrastructure for the submarine construction yard. Around 5,500 direct jobs are expected to be created to build the nuclear-powered submarines in South Australia, when the program reaches its peak.

This week in Western Australia, HMS Anson, a United Kingdom Astute-class submarine, is at HMAS Stirling for maintenance, marking the first time a UK nuclear‑powered submarine has undergone a maintenance period in Australia. 

Together, these key AUKUS milestones demonstrate how Australia and our partners continue to grow the already‑strong momentum on this historic program.

Quotes attributable to Deputy Prime Minister, Richard Marles:

“Australia continues to work with the United Kingdom and United States to develop the capabilities, skills and knowledge that will underpin our ability to build, operate and maintain nuclear‑powered submarines. 

“Early investment in components such as the nuclear propulsion systems will be critical to the delivery of AUKUS. 

“By working with our AUKUS partners, the Albanese Government continues to support defence industry and workforce cooperation, which will in turn support jobs in Australia for generations to come.  

Quotes attributable to Minister for Defence Industry, Pat Conroy:

“Starting work early on critical submarine components is essential to keeping this program on track. The next-generation SSN-AUKUS submarines will be an extraordinary capability, designed and built by trusted partners and powered by a company with decades of nuclear-propulsion experience. 

“Australia’s investment is helping to lay the foundations for a sovereign capability that will keep Australians safe for decades to come. This is a concrete example of allied industrial capacity delivering real benefits for Australia.

“It is also creating and supporting skilled jobs, training and educating workers, creating opportunities for Australian industry and strengthening AUKUS supply chains, and ensuring the highest standards of safety and security. 

“Together with our record investment at Osborne in South Australia, this demonstrates Australia is serious about building a safe, secure and enduring submarine capability that contributes to regional stability and delivers tangible benefits for Australian workers and businesses.”

24 FEBRUARY 2026