Australia’s preparations for nuclear-powered submarines under AUKUS are driving new partnerships focused on strengthening local manufacturing, skills and supply chains.
As part of this broader national shift, a new agreement between Rolls-Royce and the Victorian Government aims to support capability building while navigating the technical and workforce challenges of developing a long-term nuclear program.
In particular, Rolls-Royce has taken a further step in its participation in Australia’s AUKUS submarine program, entering a new agreement with the Victorian Government aimed at advancing cooperation across defence manufacturing, nuclear skills development, innovation and supply chain growth, as revealed in a news release.
The development follows Australian Manufacturing’s exclusive interview with a Rolls-Royce spokesperson, who detailed how the UK company plans to help accelerate Australia’s nuclear capability and broaden opportunities for local industry.
The memorandum of understanding (MOU) commits Rolls-Royce and Victoria to collaborate on specialised training pathways, research initiatives and supply chain growth to support future nuclear-powered submarine operations.
According to the spokesperson, the company’s decades-long expertise in submarine reactor technology will be central to shaping Australian capability.
“We’ve got over 65 years of experience designing, building and maintaining the reactors for all UK Royal Navy nuclear submarines… Our goal is to help accelerate Australia’s nuclear skills and capability using the lessons we’ve learned along the way,” the spokesperson said.
A focus of the agreement will be the potential creation of Rolls-Royce-affiliated skills and training academies in Victoria, modelled on the UK’s Nuclear Skills Academy in Derby. The spokesperson said the rapid establishment of that facility – completed in nine months through joint work with universities, local government and industry – demonstrates the importance of collective effort.
“The single biggest lesson we learnt is that we could never have achieved the pace and quality of the final product if we’d tried to do it on our own,” they said.
The spokesperson noted that many local capabilities can transition into nuclear disciplines with dedicated training. “Australia is already in a fantastic place because of its existing strong pedigree in manufacturing, engineering and innovation… those transferable skills can be converted into nuclear skills,” they said. Beyond engineering, they added that business, planning, supply chain and security skills will also be essential.
In the news release, Minister for Industry and Advanced Manufacturing Colin Brooks said the state’s defence sector is already a major contributor to the economy, adding, “Our defence sector contributes billions to our economy every year and supports more than 29,000 jobs ? this agreement will help ensure we continue to have a skilled pipeline of workers in this critical sector.”
Rolls-Royce said the partnership also aims to establish research collaborations between Rolls-Royce and Victorian universities, including possible University Technology Centres and affiliated clusters focused on nuclear science and defence innovation.
While details are still being developed, the spokesperson said UK experience shows the value of academic partnerships.
“Academia plays an enormous role… We work with universities across the UK to provide them with inspiring projects to explore but also so we can benefit from their unique insight and resources,” they said.
Victorian small and medium enterprises (SMEs) are set to be another major focus. The collaboration is reported to explore ways to integrate local suppliers into future submarine supply chains, aligning with Victoria’s 2024 Economic Growth Statement, which prioritises defence-oriented manufacturing expansion.
Rolls-Royce said its global supply chain practices – developed through work with more than 1,000 partners – can help Australia strengthen sovereign capability. “We are committed to a ‘one team’ approach,” the spokesperson said, highlighting accreditation, performance checks and dual-sourcing strategies used in the UK to build supplier resilience.
However, transferring nuclear submarine technology remains complex and will require coordinated action between the AUKUS partners, it noted.
“There’s no shying away from the fact that nuclear engineering and manufacture is complicated… some say that a nuclear-powered submarine is the most complex piece of technology ever created,” the spokesperson said.
They emphasised that clarity around export licences and knowledge-sharing arrangements across Australia, the UK and the US will be essential to ensuring safe and timely progress.
Rolls-Royce executives said the new Victorian agreement reinforces Australia’s long-term pathway to develop sovereign nuclear capability. In a statement, Rolls-Royce Submarines President Steve Carlier said the partnership “will bring together the world-leading research and innovation capabilities of Victoria with our own established nuclear expertise to support Australia in their mission to introduce nuclear powered submarines to their fleet.”
Looking ahead, the spokesperson expressed confidence that the collaboration will benefit both nations’ advanced manufacturing sectors. “Australia already has a hugely impressive pedigree in advanced manufacture and defence… these agreements will be of huge benefit to the UK as well as Australia,” they said.
They added that nuclear-powered submarines will generate long-term, highly skilled jobs. “By committing to nuclear-powered submarines, the nation is also committing to well-paid and exciting jobs for life.”
