£4 Billion UK contracts progresses SSN-AUKUS submarine design

The next phase of design work on the SSN-AUKUS nuclear-powered submarine has begun following the awarding of £4 billions ($7.63 billion) worth of contracts to three British prime contractors.

The signing of the Detailed Design and Long Leads (D2L2) Phase with BAE Systems, Rolls-Royce and Babcock represents a significant milestone for both the UK and the trilateral AUKUS programme as a whole, in the lead up to build the future SSN-AUKUS class of nuclear-powered attack submarines.

BAE Systems began early design work on what is now the SSN-AUKUS class in 2021. Its majority share of the funding will cover development work to 2028, enabling the company to move into the detailed design phase of the program and begin to procure long-lead items. Manufacture will start towards the end of the decade.

The aim is to deliver the first UK submarines into service in the late-2030s to replace the current Astute-Class submarines, and the first Australian submarines will follow in the early 2040s. They will be the largest, most advanced and most powerful attack submarines ever operated by the Royal Navy, combining world-leading sensors, design and weaponry in one vessel.

The contracts will progress the program through the design, prototyping and purchase of main long-lead components for the first UK submarines, allowing construction to commence in the coming years and ensure the stability and resilience of our domestic supply chain. They build on more than 60 years of UK expertise in designing, building and operating nuclear-powered submarines, and will support thousands of highly skilled jobs in the UK.

It’s unclear as yet how these contracts will impact on the Australian supply chain for the SSN-AUKUS class.

Alongside the design development and long-lead procurement, infrastructure at BAE Systems’ submarine shipyard in Barrow-in-Furness and the Rolls-Royce nuclear reactor manufacturing site in Raynesway, Derby, will be developed and expanded where needed to meet the requirement of the future submarine build program.

Construction of the UK’s submarines will take place principally in Barrow-in-Furness, while Australia will work over the next decade to build up its submarine industrial base and will build its submarines in Australia with Rolls-Royce supplying the nuclear reactors for all UK and Australian submarines.

BAE Systems’ Submarines business plays a vital role in the UK economy, particularly in the north west of England. By the end of this year, its workforce will grow to 12,500, including around new 900 apprentices and graduates.

The business plans to recruit an additional 2,700 people next year, which will include a further 900 apprentices and graduates providing a significant employment boost for the region.

BAE Systems has already delivered five of seven Astute class submarines to the Royal Navy with the remaining two boats at advanced stages of construction. The Company is also designing and building the UK’s next-generation nuclear deterrent submarines, Dreadnought, with work underway on three of the four new boats.