The Australian Government has released a new strategy, aimed at providing greater clarity for industry to grow and enter AUKUS supply chains.

The AUKUS Submarine Industry Strategy outlines the opportunities and pathways for Australian industry to support the nation’s nuclear-powered submarine program, one of the largest industrial undertakings in the country’s history.

The strategy provides industry with a prioritisation framework, enabling businesses to confidently invest in their own technical capabilities, personnel and infrastructure.

This is an important step for South Australia’s defence industry ecosystem, with between 4,000 and 5,500 roles to be created in the state to support the building of submarines, along with an additional up to 4,000 workers needed for the design and construction of the infrastructure for the new submarine construction yard at Osborne.

The Strategy sets out five critical lines of effort to boost Australian industry uplift:

• creating demand clarity for industry
• boosting investment attractiveness in critical areas
• simplifying regulation
• growing the skilled workforce
• integrating Australian industry into US and UK supply chains.

Deputy Prime Minister, the Hon Richard Marles MP said the Strategy would set out how the government would support and grow priority industry sectors, alongside AUKUS partners.

“Our work does not stop here. As a multi-decade, multi-generational undertaking which will create around 20,000 jobs across the country, the Strategy will continue to evolve in line with industry and capability requirements as the AUKUS pathway progresses,” Deputy Prime Minister Marles said.

In further support of Australian industry involvement in the AUKUS program, the Australian Government has also introduced a new Australian Submarine Supplier Qualification Pilot, building on the success of the recent partnership of HII Australia with the South Australian and Western Australian Governments.

HII Australia has been awarded an initial $9.6 million contract to deliver the program over the next two years in partnership with H&B Defence – a HII and Babcock joint venture.

The Pilot program will accelerate the identification and qualification of Australian suppliers and products so they can access the US Virginia class supply chain.

HII – through H&B Defence – will identify and work with Australian small and medium-sized enterprises, including those not currently part of Australia’s submarine industrial base.

Minister for Defence Industry and Capability Delivery, the Hon Pat Conroy said the new program would provide an additional pathway for Australian suppliers to access the Virginia class supply chain.

“Leveraging the expertise of companies like HII Australia, whose origins are rooted in our AUKUS partner submarine programs, will enable Australian industry to benefit from generations of lessons learned, and forge ahead developing a strong, skilled sovereign workforce,” Minister Conroy said.

Managing Director of H&B Defence Tim Brown welcomed the announcement.

“This initiative underpins Australia’s industrial mobilisation efforts and will greatly enhance the nation’s sovereign capability—uplifting its industrial base to  support the nuclear-powered submarine programs of each of the AUKUS partners,” he said.

HII is the largest military shipbuilder in the United States and one of two companies that builds United States nuclear-powered submarines.

Read the media releases

– AUKUS Submarine Industry Strategy

– Australian Submarine Supplier Qualification Pilot