Australia is set to provide $3 billion to British industry to support the construction of nuclear-powered submarines and ensure the timely delivery of its new fleet, as announced by the two countries on Friday. This announcement comes a day after the countries signed a defense and security agreement to better address challenges such as China’s increasing activities in the South China Sea and the South Pacific. British Defense Minister Grant Shapps stated that while the submarine program is expensive, it is necessary. Shapps told Australian Broadcasting Corporation: “Nuclear-powered submarines are not cheap, but we live in a more dangerous world where we are witnessing a more assertive region with China, and a more dangerous world everywhere with what is happening in the Middle East and Europe. Countries need to invest to ensure that adversaries see we are serious about our security.”
The 10-year agreement, announced at the annual ministerial meeting, aims to enhance the capacity at Rolls Royce’s Derby facility in the UK to build the reactors that will power the submarines being manufactured by BAE Systems in Adelaide, Australia. The submarines, classified as "Virginia" class, will be primarily designed by Britain but will feature an American weapon system. Australian Defense Minister Richard Marles stated that the agreement demonstrates that the nuclear submarine program will be realized and will create new production capabilities for "AUKUS" partners, referring to the defense and security pact that includes Australia, Britain, and the United States.
