Aussie industry gains expanded pathway into UK, US submarine supply chains

Less than a year after its introduction, AUSSQ will receive an additional $21 million in funding, taking total Commonwealth investment in the program to nearly $40 million.

The expansion will, for the first time, directly connect Australian firms to United Kingdom submarine sustainment and build programs while also deepening access to established United States supply chains.

A key component of the funding includes $6.9 million to support Australian businesses providing sustainment services for UK submarines operating under the Submarine Rotational Force – West at HMAS Stirling.

The initiative will see local companies assessed against priority service areas identified by Babcock International Group, particularly those linked to the Royal Navy’s Astute Class submarine fleet.

A further $14 million will expand Australian participation in US supply chains, specifically those tied to Huntington Ingalls Industries’ (HII) Newport News Shipbuilding operations.

This phase will open opportunities for firms specialising in composites, glass-reinforced plastics, and complex manufacturing such as furniture and joinery for nuclear-powered submarines and aircraft carriers.

VIEW ALL

To date, 13 Australian companies have achieved supplier qualification under AUSSQ, highlighting early momentum in integrating domestic industry into allied defence programs. The program is delivered by HII Australia through H&B Defence, a joint venture with Babcock.

In parallel, ASC and BAE Systems have launched a new supply chain qualification program targeting the future SSN-AUKUS submarine build in both Australia and the UK.

Initial expressions of interest are being sought from Australian manufacturers capable of delivering a wide range of metal fabrications, from small components to major structural assemblies. The program is open to both established defence suppliers and new entrants.

Australia’s SSN-AUKUS submarines, based on a next-generation UK design and incorporating advanced US technologies, are scheduled to begin construction at Osborne in South Australia before the end of the decade, with the project expected to generate around 5,500 jobs.

Deputy Prime Minister Richard Marles described AUKUS as “one of the greatest industrial endeavours in our nation’s history”.

“It is supporting advanced manufacturing, creating high-value jobs, and strengthening Australia’s security, and the Albanese government is committed to seeing Australian businesses at its forefront,” he said.

Minister Marles added that expanding AUSSQ to support UK Astute Class sustainment marked “another important step in strengthening the industrial partnerships at the heart of AUKUS”, while the ASC–BAE initiative provides “yet another pathway for industry right across the nation to enter the supply chains of not just Australia’s nuclear-powered submarine program, but of our AUKUS partners as well”.

“Together, these programs will make an enormous contribution to Australian businesses and jobs in support of our national defence,” he said.

Minister for Defence Industry Pat Conroy said the program was already demonstrating tangible results.

“The AUSSQ program is already demonstrating the quality contribution that Australian companies can make to AUKUS supply chains, supporting export opportunities and Australian jobs,” he said.

“Australian industry support to US and UK maintenance activities not only helps keep their submarines at sea, it also strengthens Australia’s industrial capability to support Australia’s future fleet.”

Industry leaders also welcomed the expansion, pointing to its practical impact on capability development and workforce readiness.

Babcock Australasia acting CEO Leah Grantham said recent maintenance work on the Royal Navy submarine HMS Anson at HMAS Stirling demonstrated how emerging local capabilities are already being applied.

“The upskilling of Australian companies to UK supply chain standards ensures they are ready to support Royal Navy Astute Class submarines in Australia, while also enabling them to compete for work directly within the UK submarine supply chain,” she said.

HII president global security and H&B Defence board chair Michael Lempke described AUSSQ as “a practical demonstration of how AUKUS is being delivered … as a single, integrated enterprise”.

“By aligning standards and qualifying Australian industry to operate seamlessly across Australian, UK and US submarine programs, we are sharing the industrial burden in a way that strengthens all three nations,” he said.

H&B Defence managing director Tim Brown added that the latest expansion broadens technical scope and creates new pathways for Australian suppliers to compete for “long-term, high-value work in one of the world’s most advanced defence supply chains”.

Expressions of interest for the new ASC–BAE Systems qualification program are now open via the SSN-AUKUS Industry Capability Network portal, marking another step in Australia’s effort to build a sovereign, export-capable defence industrial base under AUKUS.

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.