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South Australia has secured a major win in its push to become the nation’s defence industry powerhouse, signing a landmark agreement with British defence giant Rolls-Royce to supercharge skills and technology development ahead of the AUKUS submarine program.
Premier Peter Malinauskas inked the memorandum of understanding (MOU) with Rolls-Royce in London overnight at the Defence and Security Equipment International exhibition, cementing South Australia’s role at the forefront of the trilateral pact.
The deal commits the Malinauskas government and Rolls-Royce to collaborate on workforce development, skills training and critical technologies – laying the groundwork for Australia’s first fleet of conventionally armed, nuclear-powered submarines.
“South Australia is at the forefront of the nation’s defence industry, but we need to keep growing the skills and capabilities required to meet future defence needs,” Malinauskas said.
“AUKUS presents a once-in-a-generation opportunity for our state. This MOU will help us build the workforce and industry capability needed to deliver on that opportunity,” the Premier added.
Treasurer Stephen Mullighan said the agreement demonstrated global confidence in South Australia’s ability to deliver. “We’re focused on building world-class infrastructure, a sovereign workforce and a capable, innovative industry. This MOU with Rolls-Royce is another important milestone.”
Rolls-Royce submarines president Steve Carlier welcomed the partnership. “We are incredibly proud to support Australia in their mission to introduce nuclear-powered submarines to their fleet,” he said. “This MOU allows us to leverage decades of experience to help South Australia develop a talented workforce and inspire the next generation of Australian nuclear engineers.”
The company, which has powered the UK’s Royal Navy submarines for more than 65 years, will supply all nuclear reactor plants for the new AUKUS Class boats. Its Derby site is being doubled in size to support both British and Australian programs.
South Australia is already pouring billions into defence skills and training, including:
- $208 million for five new technical colleges tailored to advanced manufacturing and defence.
- Findon Technical College, which opened this year with 230 students, is closely linked to defence innovation hubs.
- A $450,000 pilot of a software engineering degree apprenticeship with the University of South Australia (UniSA), defence industry and the Ai Group.
- Construction of the Skills and Training Academy at Osborne Naval Shipyard, set to train up to 1,000 students a year in submarine construction.
The state’s higher education landscape is also being reshaped, with the merger of the University of Adelaide and UniSA into a new Adelaide University, opening in 2026. Expected to generate $500 million annually for the economy by 2034, the university will educate more than 70,000 students and support 1,200 new jobs.
Flinders University has meanwhile struck partnerships with leading nuclear institutions in the US and the UK, further bolstering South Australia’s credentials as a hub for international nuclear expertise.
The Premier capped his London trip with a tour of the Rolls-Royce Nuclear Skills Academy, which trains 200 apprentices a year to feed into the Royal Navy submarine program – a model South Australia is eager to emulate.
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.
