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The Albanese government is opening new doors for Australian manufacturers to win high-value defence contracts in the United States submarine industrial base, following a $19 million investment in the Australian Submarine Supplier Qualification pilot program.
The government first awarded HII Australia a $9.6 million contract in March 2025 to deliver the pilot phase of the Australian Submarine Supplier Qualification (AUSSQ) program. A further $9.3 million has now been committed to expand the program with additional work packages aimed at strengthening Australia’s defence manufacturing capability.
Delivered by H&B Defence, a joint venture between HII and Babcock, the initial phase of AUSSQ focused on Australian companies specialising in castings, forgings and precision machining. The next stage will expand to include local manufacturers involved in air and gas flasks, as well as fabricated components.
The AUSSQ program helps Australian firms meet the stringent requirements to become approved suppliers to HII, the largest military shipbuilder in the United States and one of only two companies that build America’s nuclear-powered submarines.
Minister for Defence Industry Pat Conroy said, “AUKUS is delivering real benefits for Australian industry and jobs. This program is helping build a strong, sovereign submarine enterprise that will keep Australia safe for decades to come.”
To date, 22 Australian businesses are participating in the program, with eight already achieving full qualification:
- MacTaggart Scott Australia
- Levett Engineering
- Century Engineering
- H-E Parts International
- Veem
- Hofmann Engineering
- Dobbie
- MTA
Three of those companies – Hofmann Engineering, Veem, and Axiom – have since been invited to quote for contracts within the US supply chain.
AUSSQ works alongside the Defence Industry Vendor Qualification Program as part of the Albanese government’s broader effort to strengthen Australia’s defence industrial base. Both programs provide hands-on support to help local companies meet US technical and quality standards, navigate export approvals, and connect with international supply chains.
“This $19 million investment is helping Australian businesses break into global supply chains and contribute to allied industrial capacity. It’s about creating jobs, growing skills, and giving our manufacturers a chance to compete on the world stage,” Minister Conroy said.
This initiative is seen as a key step towards expanding Australia’s submarine industrial capacity, preparing the nation for the construction and sustainment of its future fleet of conventionally armed, nuclear-powered submarines under AUKUS.
The government said the investment will create jobs, grow advanced manufacturing skills, and reinforce Australia’s national security through closer industrial collaboration with the United States.
Stephen Kuper
Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.
