BAE Systems awarded £4 billion UK contract for Aukus attack submarine programme

The US, UK and Australia in March unveiled details of the Aukus plan to provide Australia with nuclear-powered attack submarines from the early 2030s

Britain, which will also operate the submarines, is pivoting its foreign and defence policy towards Indo-Pacific

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A poster for BAE Systems, which the UK has awarded a US$4.9 billion contract as part of the Aukus programme. Photo: Reuters

Published: 3:55am, 2 Oct 2023

Britain’s government has awarded BAE Systems a £4 billion (US$4.9 billion) contract as part of the Aukus programme with Australia and the United States to build attack submarines, defence minister Grant Shapps and the company said on Sunday.

The United States, Australia and Britain in March unveiled details of the Aukus plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China’s ambitions in the Indo-Pacific region.

Britain, which will also operate the submarines, is pivoting its foreign and defence policy towards Indo-Pacific and is also seeking trade deals with fast-growing economies there after it left the European Union.

BAE Systems, which has said Aukus will be “significant” for the company, said in a statement the defence ministry had awarded it the funding to cover development work to 2028, allowing it to start detailed design work on the submarines.

“This multi billion pound investment in the Aukus submarine programme will help deliver the long-term hunter-killer submarine capabilities the UK needs,” Shapps said in the statement.

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