AUKUS Implementation Plan in Australia: A Roadmap to Opportunities for UK Companies.

Why this is important for UK businesses

Exploring Australia’s AUKUS pathway and its substantial investments that are expected to present potential opportunities for UK & EU businesses with expertise in the Maritime and Naval sectors.

Established and first announced in 2021, the AUKUS is a strategic partnership among Australia, the United Kingdom, and the United States to bolster their allied deterrence and defense capabilities in the Indo-Pacific. Recently in March, 2023, the leaders of three countries announced a plan for the implementation of AUKUS, comprising two pillars:

• Pillar 1 – Submarines: AUKUS aims to provide Australia with conventionally armed, nuclear-powered submarines (SSN)
• Pillar 2 – Advanced capabilities: AUKUS will develop and provide joint advanced military capabilities (i.e., quantum technologies, AI, cyber-defense, hypersonic missiles, undersea capabilities, etc.) to promote security and stability in the Indo-Pacific region.

Pillar 1 is already underway, with Australia’s leader announcing the AUKUS Nuclear-Powered Submarine Pathway. Key activities and plans include:

• ?A rotational presence of UK and US submarines in Western Australia from 2027, known as “Submarine Rotational Force-West” (SRF-West).
• The delivery of at least three and up to five Virginia-class nuclear-power submarines (subject to US Congressional approval) for the Royal Australian Navy from the early 2030s; followed by
• The development, construction and delivery of an advanced, nuclear-power submarine called “SSN-AUKUS”, incorporating Australian, UK and US technologies. The first SSN-AUKUS will be delivered by the UK in the late 2030s, followed by Australian-built subs expected to be delivered in the early 2040s.

To fuel those activities and achieve submarine capability, Australia has committed to investing up to A$368 billion (￡187.2 billion) over the next 30 years, its biggest military spending since World War II. While a large proportion of investments will be spent on building submarines, UK & EU companies specializing in maritime and naval sectors may find potential opportunities in Australia from the following components of the investment:

• ?A$8 billion (￡4 billion) over the next decade to upgrade the HMAS Stirling naval base in Western Australia to accommodate visits by US and UK vessels and become the base for the new fleet.
• A$2 billion (￡1 billion) over the next four years in the Osborne Submarine Construction Yard infrastructure in Adelaide, South Australia, to equip it for building the new subs.
• An estimate of A$10 billion (￡5 billion) to build a new submarine base on the east coast of Australia, with potential locations including Newcastle, Brisbane, or Port Kembla.

While there has been no specific announcement regarding the expected timeline and milestones for the Pillar 2 – Advanced capabilities, trilateral AUKUS partners have already made notable progress. One of the examples was a trial of AUKUS Artificial Intelligence (AI) and Autonomy in the UK in April. Future developments under Pillar 2 are expected to present opportunities for companies that specialize in the six key areas of AUKUS cooperation.

UK companies and EU exporters with expertise in maritime and naval sectors are encouraged to review the AUKUS Nuclear-Power Submarine Pathway. For those interested, it is recommended to attend the Indo-Pacific 2023 International Maritime Exposition in Sydney, scheduled for November 2023.?

UK & EU companies, who can supply for the Virginia-class sub or provide relevant technological services, are encouraged to reach out to Foley for an initial discussion about the opportunities and seek support in the Australian market.