The US Navy has awarded HII’s Newport News Shipbuilding division a $56 million contract to undertake engineering and design activities for the AUKUS partnership. An option could increase the value to $91 million. The agreement supports development of SSN-AUKUS, a future nuclear-powered attack submarine planned for the Royal Navy and Royal Australian Navy. It also provides assistance to Australia and the UK through the US Foreign Military Sales framework.

Work under the contract will cover technical integration, engineering support, supplier development, employee training and the use of digital tools. HII already supports Australia’s submarine plans through other initiatives, including helping Australian companies qualify for the American submarine supply chain and delivering nuclear-programme management and technical advice.

**Long-Term Submarine Plans:** The AUKUS arrangement brings Australia, the United Kingdom and the United States together to strengthen defence and technology cooperation. Australia’s intended fleet will use nuclear propulsion while carrying conventional weapons. Current plans envisage the US selling three Virginia-class submarines to Australia from the early 2030s, with Canberra potentially seeking approval for up to two more. These boats are expected to provide an interim capability until SSN-AUKUS becomes available.

The future submarine will follow a British design incorporating technology from all three countries. American contributions are expected to include propulsion equipment, weapons and a vertical missile-launch system. The UK and Australia will manufacture their respective vessels at home. Britain aims to deliver its first boat in the late 2030s, while Australia’s first domestically built submarine is planned for the early 2040s. Their expected roles include surveillance, intelligence collection, undersea combat and strike operations.

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