HII’s Newport News Shipbuilding division has secured a $56 million US Navy contract to support engineering and design activities under the AUKUS security partnership involving Australia, the United Kingdom, and the United States. According to the company, the contract value could rise to $91 million if an additional option is exercised.
The work will support the development of SSN-AUKUS, a next-generation nuclear-powered attack submarine that the UK and Australia plan to construct for their respective navies. The contract also includes assistance to both countries through the US Foreign Military Sales (FMS) programme.
The scope of work covers technology integration, engineering services, supplier development, workforce training, and the adoption of digital tools to support submarine design and production.
HII is already involved in other initiatives supporting Australia’s submarine ambitions. These include programmes to help Australian suppliers qualify for the US submarine supply chain, as well as contracts covering nuclear programme management and technical advisory services.
Australia’s Submarine Strategy Under AUKUS
The AUKUS partnership brings together Canberra, London, and Washington to strengthen defence cooperation and expand undersea capabilities. A central objective is to equip Australia with a fleet of nuclear-powered, conventionally armed submarines.
Under the Australian Submarine Agency’s plans, the United States intends to sell Australia three Virginia-class submarines beginning in the early 2030s. Australia could pursue approval to acquire up to two additional vessels, if required, to establish an interim submarine capability while SSN-AUKUS is developed.
SSN-AUKUS will be based on a British-designed platform incorporating technologies and contributions from all three partner nations. The US is expected to supply key components, including propulsion-related technologies, weapons, and a vertical launch system that enables missiles to be launched from integrated submarine tubes.
The United Kingdom and Australia will construct their respective submarines at domestic shipyards. Britain expects to deliver its first SSN-AUKUS submarine in the late 2030s, while Australia’s first domestically built vessel is targeted for the early 2040s.
Designed for a broad range of naval operations, the submarines are expected to undertake intelligence collection, surveillance, undersea warfare, and strike missions. The programme represents a major long-term effort to strengthen allied submarine capabilities and deepen industrial cooperation across the three AUKUS nations.
