The US plans to transfer three Virginia-class SSNs to Australia as part of the AUKUS alliance. Credit: © Commonwealth of Australia.

Australian Submarine Agency (ASC) and BAE Systems have entered a tripartite agreement that marks the beginning of preparatory work for the construction of Australia’s SSN-AUKUS submarines.

By securing a key agreement, the Australian Government is moving forward with the development of the nation’s conventionally-armed, nuclear-powered submarines in South Australia.

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In March 2023, the federal government named ASC and BAE Systems as the sovereign submarine partners to construct the SSN-AUKUS submarines at the Osborne Naval Shipyard.

The companies have now entered a collaborative mobilisation agreement to facilitate planning, workforce development, and procurement activities for the project.

Under this agreement, ASC and BAE Systems will start critical activities such as planning, workforce development, procuring long lead items, and schedules for the mobilisation of the SSN-AUKUS build programme.

The partners will also undertake risk-reduction activities, including validating infrastructure requirements, configuring production processes, and conducting prototyping.

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Australia Deputy Prime Minister Richard Marles said: “These mobilisation arrangements provide the foundation that will underpin a generational uplift in Australia’s industrial base for the construction of this critical capability.”

Defence Industry and Capability Delivery Minister Pat Conroy added: “This agreement enables critical scopes of work, including the development of the Australian shipbuilding workforce and supply chain, and underscores the Albanese Government’s commitment to a future made in Australia.”

Announced in September 2021, the AUKUS partnership involves Australia, the UK, and the US.

The first initiative under AUKUS was to support Australia in acquiring nuclear-powered submarines for the Royal Australian Navy.

Last year, AUKUS partners outlined a pathway to develop a nuclear-powered submarine capability in Australia.

The SSN-AUKUS submarines will be based on the UK’s next-generation submarine design, incorporating technologies from all three nations, including US submarine technologies.

The submarines will be built in both the UK and Australia, with work commencing by 2030.

They are expected to enter service in the UK by the late 2030s and in Australia by the early 2040s.

In the meantime, the US will transfer three Virginia-class SSNs to Australia, with the possibility of selling two more.

In August, the White House authorised the future sale of nuclear material to Australia under the AUKUS alliance.