Australia seals UK defence deal with $300m for AUKUS sub reactors
Australia will deepen defense ties with the UK by spending $310 million on the new phase of the AUKUS submarine project and launching joint studies on radar systems, unmanned aerial vehicles and missile tests that could help Ukraine.
The agreement was signed at a meeting between Australian and British ministers in London on Monday night, paving the way for closer links in the defense industry towards the development of defense weapons.
Australia has previously pledged $5 billion to help fund the development of nuclear energy systems for the AUKUS fleet, but the new spend will be the first payment for Rolls-Royce equipment to be installed on the first submarines.
$310 million will purchase the first components of nuclear reactors to be supplied by Rolls-Royce and will be transferred to South Australia to be fitted to the first two AUKUS ships to be built at the Osborne shipyard.
Defense Industry Minister Pat Conroy met with his counterpart, UK Defense Preparedness and Industry Minister Luke Pollard, on Monday and announced the funding following the talks.
“This is the beginning of the construction process of these reactors,” Conroy said in London.
“We are on our way. We are reaching all the important milestones for the AUKUS project.”
In addition to claiming progress on nuclear reactor modules, Conroy pointed out that the government last week announced a $3.9 billion commitment to build the Osborne shipyard; this cost will likely rise to $30 billion within a few decades.
“This announcement and $30 billion investment will build the only submarine shipyard in the Southern Hemisphere capable of building a nuclear-powered submarine,” he said.
“This is a challenging project. This is a project that is the largest industrial initiative Australia has ever undertaken, but it will also shape the country in terms of modernizing our manufacturing sector.”
Although AUKUS is fiercely opposed by some members of the Labor Party and rejected by former prime minister Paul Keating and former foreign secretary Bob Carr, the government insists it is essential for national defense and will create 20,000 jobs over decades.
The agreement is based on US assistance for the temporary supply of submarines (three Virginia-class ships) but has a long-term goal of developing a future ship with the UK.
From the early 2040s, Australia aims to have five ships using the same SSN-AUKUS design as the UK, which plans to have up to 12 ships. The project is based on calculations that without the new fleet, Britain would be more vulnerable to Russia and Australia to China.
Conroy and his British counterpart emerged from their meeting in London with plans to jointly work on other projects, including lasers and radars.
The statement of the meeting stated that the two sides will explore the UK’s potential to use radar systems developed in Australia.
Australia has world-leading radar technology developed by Canberra-based CEA Technologies, which the federal government purchased in 2023 to ensure the intellectual property remains in the country.
Two sides plan to work on drones “Ghost Bat” aircraftThis missile, currently produced in Australia, can be equipped with missiles to complement the arsenals of the UK and other NATO member countries.
“This will potentially facilitate the export of Ghost Bats to European countries that may be interested,” Conroy said.
British missiles will be tested in Australia
The agreement in London will also see British missiles tested in Australia to help develop new weapons to supply Ukraine.
“I will not comment on specific UK weapons that may be tested at our weapons ranges, but there are a number of advanced, long-range weapons that the UK has supplied or plans to supply to Ukraine,” Conroy said.
“Clearly, testing them at our world-class facilities will provide leverage in this process and further assist Ukraine in its valiant fight against Russian aggression.”
The talks also led to an agreement to carry out further work on laser weapons, cooperate on the supply of critical minerals and increase the number of Australians “embedded” at UK defense company BAE Systems in preparation for the construction of the AUKUS fleet.
Joint work on the AUKUS design, with five to be built in South Australia and up to 12 in the UK, is expected to reduce construction costs compared to each country creating its own design.
Any difficulties in the UK construction schedule will be reflected in Australia due to joint development.
Rich Palmer, Rolls-Royce’s director of future programs, told this imprint last October: I am “100 percent” sure that the submarines will be deliveredDespite concerns about AUKUS in the US and harsh criticism of the project in Australia.
Britain’s timeline depends on the country’s ability to build a new submarine every 18 months for the existing fleet before switching to the new fleet once the AUKUS design is decided upon. Industry experts are concerned that each Astute submarine currently takes about 24 months to build.
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David Crowe is the European correspondent for The Sydney Morning Herald and The Age.Connect with: X or email.
