The Australian Government has announced a $19 million investment to support Australian manufacturers seeking to secure contracts within the United States submarine industrial base through the Australian Submarine Supplier Qualification (AUSSQ) Pilot program.
In a media release, the Australian Government said the new funding builds on an initial $9.6 million contract awarded to HII Australia in March 2025 to deliver the pilot phase of AUSSQ.
A further $9.3 million has now been committed to expand the program through additional work packages aimed at strengthening the nation’s advanced manufacturing capabilities.
According to the government, the AUSSQ initiative is designed to help Australian companies meet the technical and quality standards required to become approved suppliers to HII, the largest military shipbuilder in the United States and one of only two companies that produce nuclear-powered submarines.
The government said the initial phase of the program, delivered by H&B Defence – a joint venture between HII and Babcock – focused on manufacturing areas such as castings, forgings, and precision machining.
The next stage will expand to include air and gas flasks and fabricated parts, broadening local industrial capacity to meet the demands of international submarine production.
Government figures show that twenty-two Australian businesses are currently participating in the AUSSQ program, with eight – MacTaggart Scott Australia, Levett Engineering, Century Engineering, H E Parts International, Veem, Hofmann Engineering, Dobbie, and MTA – now fully qualified.
Three of these companies – Hofmann Engineering, Veem, and Axiom – have been invited to quote for work in the US submarine supply chain.
Minister for Defence Industry Pat Conroy said the investment represents a key step in ensuring Australian manufacturers can compete globally while contributing to allied defence capabilities.
“AUKUS is delivering real benefits for Australian industry and jobs,” Minister Conroy said. “This program is helping build a strong, sovereign submarine enterprise that will keep Australia safe for decades to come.”
Minister Conroy said the Government’s funding commitment would bolster Australia’s manufacturing sector by increasing access to international markets and developing specialised industrial skills.
“This $19 million investment is helping Australian businesses break into global supply chains and contribute to allied industrial capacity,” he said.
“It’s about creating jobs, growing skills, and giving our manufacturers a chance to compete on the world stage.”
The Albanese Government said AUSSQ complements the Defence Industry Vendor Qualification Program (DIVQ) and forms part of a broader effort to grow Australia’s defence manufacturing base.
These initiatives, the government added, are designed to provide hands-on support to help local businesses meet US standards, navigate export approvals, and connect with global supply chains.
According to the Government, the AUSSQ program is also helping expand Australia’s submarine industrial base and prepare local manufacturers for the future work required to build and sustain conventionally armed, nuclear-powered submarines under the AUKUS partnership.
