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Rolls-Royce has signed a memorandum of understanding with the Victorian government to boost the state’s defence industry capabilities, workforce skills and innovation ecosystem in support of the AUKUS Nuclear-powered Submarine Program.
The agreement outlines a shared commitment to develop Victoria’s industrial base and research capacity to help deliver Australia’s future conventionally armed, nuclear-powered submarines under the AUKUS partnership.
A major focus of the collaboration will be developing Australia’s nuclear skills base. Rolls-Royce is exploring the establishment of skills and training academies in Victoria, modelled on the company’s award-winning Nuclear Skills Academy in Derby, UK. Opened in 2022, the Derby academy enrols up to 200 apprentices each year, creating a steady pipeline of nuclear engineering talent to support the UK’s Royal Navy submarine program.
The MOU also aims to strengthen Victoria’s research and development sector, with plans to create new Rolls-Royce University Technology Centres and associated research clusters in partnership with leading Victorian universities.
Steve Carlier, president of Rolls-Royce Submarines, said the partnership would combine Victoria’s world-class research capabilities with Rolls-Royce’s decades of nuclear expertise.
“This collaboration agreement will bring together the world-leading research and innovation capabilities of Victoria with our own established nuclear expertise to support Australia in its mission to introduce nuclear-powered submarines to the fleet,” Carlier said.
The Victorian MOU follows similar agreements signed with the Western Australian and South Australian governments in September 2025, marking another milestone in Australia’s preparations to operate nuclear-powered submarines for the first time.
“Nuclear submarines deliver unmatched endurance, range, stealth, power and reliability – the pinnacle of maritime capability,” Carlier said. “Through this agreement, we’ll help Australia build a sustainable in-country supply chain while developing homegrown nuclear talent and high-quality careers for Australians.”
Victoria has positioned itself as a national leader in research, innovation and advanced manufacturing, with eight globally recognised universities and a thriving technology ecosystem. The partnership builds on the state’s Economic Growth Statement, released in December 2024, which prioritised defence industry development, small business participation, workforce upskilling and increased innovation to support AUKUS-related opportunities.
Colin Brooks, Victorian minister for industry and advanced manufacturing, said the partnership would help strengthen the state’s defence sector, which already contributes billions to the economy and supports more than 29,000 jobs.
“Our defence sector is critical to Victoria’s economy – this agreement will help ensure we continue to grow a skilled pipeline of workers to meet future demand,” Minister Brooks said.
The collaboration will also create new opportunities for Victorian small and medium-sized enterprises to participate in the AUKUS supply chain, supporting local manufacturing, technology and service industries.
Rolls-Royce has powered the UK’s nuclear submarine fleet for more than 65 years and remains the only private company globally with end-to-end nuclear capability – spanning reactor design, manufacture and decommissioning. The company is currently expanding its Derby site to support both UK and Australian submarine programs.
In March 2023, Rolls-Royce Submarines was confirmed as the supplier of all nuclear reactor plants for the new class of AUKUS submarines being developed under the trilateral agreement between Australia, the UK and the United States.
Today, Rolls-Royce Submarines employs over 5,000 people and is responsible for the design, manufacture and in-service support of the pressurised water reactors that power every submarine in the Royal Navy fleet.
The company is also engaged in the ongoing Astute and Dreadnought submarine programs, providing reactor systems, components and global operational support from its facilities across the UK, including Derby, Barrow-in-Furness, Devonport, Faslane, Glasgow, Cardiff and Thurso.
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.
