UK and Australian defence deal agreed as BAE wins nuclear submarine contract
BAE Systems was awarded a US$5.1 billion contract last year by the UK Ministry of Defence to delivery the next phase of the SSN-AUKUS programme. (Image: BAE Systems)
Deal signed in Canberra will see Australia and the UK bolster their defence partnership via operational agreements, security consultancy and further deals for their primary defence firms.
Australia and the UK have signed a new defence and security cooperation agreement as BAE Systems was awarded a contract to build Australia’s new fleet of nuclear-powered submarines.
The two countries have put in place a status of forces agreement which will make it easier for their respective forces to operate together within each other’s borders, while further agreeing to consult on issues affecting sovereignty and regional security.
The announcement which updated an outstanding partnership was signed by the Australian deputy Prime Minister Richard Marles and UK secretary of state for defence Grant Shapps in Canberra. It was made on the same day that BAE Systems confirmed it had been selected by the Australian government to build the country’s new fleet of nuclear-powered submarines alongside ASC Pty Ltd.
Related Articles
Australia dives deep with $2 billion AUKUS submarine training investment
Netherlands selects Barracuda submarine as Australia looks on
Among the initiatives agreed between the two countries were the UK’s contribution to the Combined Intelligence Centre – Australia, within the Defence Intelligence Organisation, and a commitment to develop a joint climate action plan by the time of the Australia-UK Ministerial consultations (AUKMIN) 2025 meeting.
Continued cooperation on capability development – including through the trilateral AUKUS pact between Australia, the UK and the US signed in 2021 – as well as the establishment of elevated joint staff talks were also agreed, along with plans to increase collaboration on undersea warfare, autonomous sea mine clearance, science and technology.
The UK’s will contribute to the Talisman Sabre, Pitch Black and Predators Run exercises, while Australia will provide support for the UK’s Littoral Response Group-South and participate in a carrier strike group visit to the Indo-Pacific in 2025.
Marles remarked: “As the world becomes more complex and uncertain, we must modernise our most important partnerships. The agreements we reached today will secure this outcome into the future.”
BAE Systems and ASC Pty Ltd, meanwhile, have been awarded a contract to help build the next generation of Australia’s nuclear submarines. The contract formed part of the AUKUS pact and will see Australia attempt to deliver its first SSN-AUKUS submarine in the early 2040s.
BAE has claimed that the SSN-AUKUS will be the largest and most advanced attack submarines the UK Royal Navy has operated when the boats replace the Astute-class from the late 2030s.
BAE Systems was awarded almost £4 billion (US$5.1 billion) by the UK Ministry of Defence for the next phase of the SSN-AUKUS programme in October 2023 which will fund development work through to 2028.
BAE chief executive Charles Woodburn remarked: “Our selection as a partner in Australia, alongside ASC, recognises our role as the UK’s long-term submarine design and build partner and as a key player in Australia’s maritime enterprise and wider defence landscape.
“This latest step will ensure an integral connection between the UK design and the build strategy development in Australia as we work together to deliver next generation military capability,” he added.
Related Programmes in Defence Insight
AUKUS-SSNs/SSN(R) Astute Replacement Programme [UK]
Related Equipment in Defence Insight
More from Naval Warfare
-
![New UK-Norway pact covers warship, missile and autonomous system collaboration]()
New UK-Norway pact covers warship, missile and autonomous system collaboration
The Lunna House Agreement represents multiple opportunities for cooperation between the two navies, and follows on from last year’s declaration of a joint strategic partnership between the countries.
-
![How will the Canadian Coast Guard’s transfer to the DND umbrella affect its capabilities?]()
How will the Canadian Coast Guard’s transfer to the DND umbrella affect its capabilities?
By joining the defence department, the coast guard will need to acquire new solutions and adapt its in-service capabilities to ensure interoperability with the Canadian Armed Forces.
-
![UK MoD’s confirmation of MBDA missile for Type 26 points to more European collaboration]()
UK MoD’s confirmation of MBDA missile for Type 26 points to more European collaboration
The Type 26 will also be fitted with the Sea Ceptor vertically launched air defence system that can fire CAMM missiles and a 24-cell Mk 41 vertical launch system that can fire the Tomahawk land-attack cruise missiles, anti-submarine rockets and long-range anti-ship missiles.
-
![Second Royal Canadian Navy Joint Support Ship is on schedule to be launched mid-2026]()
Second Royal Canadian Navy Joint Support Ship is on schedule to be launched mid-2026
While the first Joint Support Ship is currently in the final stages of outfitting, the second one is on schedule for launching next year.
-
![Is South Korea finally being taken seriously for Western submarine programmes?]()
Is South Korea finally being taken seriously for Western submarine programmes?
South Korean shipbuilders are beginning to make their mark beyond Asia, competing for major North American and European submarine programmes and becoming serious contenders on a global scale.
-
![AUKUS Pillar 2 could narrow focus to “four key areas” says UK official]()
AUKUS Pillar 2 could narrow focus to “four key areas” says UK official
Few concrete ideas have emerged so far on which “advanced capabilities” will be brought forward under Pillar 2 of the AUKUS partnership, but the Pentagon’s review of the programme could bring more clarity.
