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A new program designed to qualify Australian businesses for entry into the tightly held AUKUS submarine supply chain has attracted strong national interest, with nearly 170 companies lodging expressions of interest to supply components for the United States’ Virginia Class nuclear-powered submarines.
The Defence Industry Vendor Qualification (DIVQ) Program, developed jointly by the Australian Submarine Agency (ASA) and the US government, is being delivered through ASC in partnership with America’s two primary nuclear submarine builders – General Dynamics Electric Boat and HII Newport News Shipbuilding.
The program is intended to accelerate the qualification of Australian manufacturers to deliver critical parts for the US industrial base, ranging from valves and castings through to pipe fittings, forgings, precision-machined parts and mechanical assemblies. Several Australian businesses are already in the final stages of qualification, with contract opportunities expected to open within months.
ASC managing director and chief executive officer Stuart Whiley said the initiative would help embed Australian suppliers into one of the most complex defence supply chains in the world.
“With 40 years’ experience building and sustaining Australia’s Collins Class submarines, ASC has built a trusted network of skilled suppliers that delivers mission-critical capability to the Royal Australian Navy,” he said.
The initiative builds on momentum in the defence sector since March 2024, when the Albanese government confirmed ASC as Australia’s Sovereign Submarine Partner, with responsibility for sustaining the Collins fleet and, alongside BAE Systems, constructing the new SSN-AUKUS class at Osborne in South Australia.
The DIVQ Program’s “early waves” are focused on the US Virginia Class build program, but further projects are already being scoped with both the US and UK. These will eventually allow Australian businesses to provide parts, services and repair work across the entire AUKUS submarine enterprise.
Whiley added, “This program provides a direct pathway for Australian industry to strengthen sovereign skills, advanced technologies and industrial resilience, while supporting the trilateral AUKUS partnership.”
The Virginia Class is widely regarded as the most advanced conventionally armed, nuclear-powered attack submarine in service globally, and will be the first nuclear-powered submarine operated by the Royal Australian Navy. Under the AUKUS agreement, Australia will initially acquire US-built Virginia Class boats in the 2030s, before transitioning to the jointly developed SSN-AUKUS design.
The ASA has confirmed that new supplier opportunities will be progressively listed on the Industry Capability Network, ensuring that small and medium enterprises across the country can engage with the program.
For a domestic defence industry already grappling with challenges of scale and market access, the DIVQ Program represents a rare opportunity: a chance to secure a foothold in an international supply chain spanning three nations and to demonstrate Australia’s ability to deliver into one of the most demanding defence programs ever undertaken.
