UK Awards £4 Billion Contract for Nuclear-Powered Submarines as Part of AUKUS Program

October 3, 2023

The United Kingdom has granted a £4 billion (USD 4.9 billion) contract to three UK-based companies, BAE Systems, Rolls-Royce, and Babcock, to design and manufacture a nuclear-powered attack submarine. This initiative is a crucial element of the AUKUS program, which involves collaboration between the UK, Australia, and the United States. The program aims to bolster the capabilities of these nations to address regional security challenges, particularly in response to China’s activities in the Asia-Pacific region.

Delivery Timeline

The first submarine from this contract will enter service in the UK during the late 2030s.
Subsequently, the first Australian submarines are expected to be delivered in the early 2040s.

Largest and Most Advanced Submarines

The UK’s Defense Ministry emphasized that these new submarines, known as SSN-AUKUS, will be the largest, most advanced, and most powerful attack submarines ever operated by the Royal Navy.
These vessels will incorporate cutting-edge sensors, design, and weaponry, consolidating various capabilities into a single formidable vessel.

Background of the AUKUS Program

The AUKUS program was unveiled in March by the leaders of Australia, the UK, and the US.
It represents a coordinated effort by these nations to counter China’s influence in the Asia-Pacific region.

Nuclear-Powered Submarines

These nuclear-powered submarines represent a significant upgrade to Australia’s existing fleet of diesel-powered submarines.
This initiative marks the first time that the US has shared nuclear propulsion technology with a country other than the UK.

Strengthening Deterrence

Analysts suggest that the AUKUS program will enhance deterrence, particularly in response to China’s assertive actions in the Pacific.
It bolsters the ability of SSNs to operate effectively in contested waters and project power with long-range cruise missiles.

Horizontal Escalation

The presence of US, UK, and eventually Australian SSNs operating collectively raises the prospect of horizontal escalation.
This could compel Beijing to consider the involvement of all three nations in response to military actions against any SSN or the submarine base.

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