Australia buys first nuclear reactor parts for AUKUS submarine program

Australia has made a significant advancement in its nuclear submarine program under the AUKUS security pact by committing AUD 310 million (approximately USD 220 million) to purchase the first British-built nuclear reactor components for its future SSN-AUKUS attack submarines. These initial payments cover long-lead items essential for early work on the propulsion systems of the first two submarines, which will be constructed at the Osborne Naval Shipyard in South Australia later this decade. This move supports supply-chain resilience, job creation in Australian industry, and reflects a broader strategy of deepening industrial cooperation with the United Kingdom, including expanded production capacity at Rolls-Royce’s submarine propulsion facilities. The payment marks a tangible milestone in transitioning from planning to manufacturing and integration of nuclear propulsion systems, complementing Australia’s AUD 3.9 billion investment in the new submarine construction yard at Osborne. The yard is central to fabricating and assembling the SSN-AUKUS vessels, expected to enter service in the early 2040