The Australian Submarine Agency has announced a new manufacturing facility in Mississippi, United States, that will increase production of critical components for Virginia-class submarines as Australia prepares for its planned acquisition of the vessels in the early 2030s.
Ground was broken on 20 October 2026 for the Propulsor Center of Excellence, being established by Bird-Johnson Propeller Company in Pascagoula. The facility will manufacture submarine propulsor rotors and other components used in the Virginia-class submarine program.
The project is supported by Australian and US investment aimed at strengthening the US submarine industrial base and increasing production and sustainment capacity.
Australia has committed US$3 billion to support these efforts, contributing to the industrial capacity required for its future acquisition of Virginia-class submarines under the AUKUS partnership.
According to the Australian Submarine Agency, propulsor rotors generate the thrust that moves a submarine through the water. Virginia-class submarines use advanced propulsion technology designed to improve underwater stealth by reducing acoustic signatures while maintaining efficiency.
Phoebe Greentree, Minister-Counsellor for AUKUS at the Australian Embassy, said the project demonstrated continued cooperation between the two countries.
“This milestone demonstrates the continued momentum and shared commitment of Australia and the United States to deliver Australia’s conventionally armed, nuclear-powered submarine capability,” Ms Greentree said.
The development follows a US government announcement of a combined investment of up to US$6.6 billion by the US Navy and Anduril into a new shipyard at Sparrows Point, Maryland. The facility is expected to manufacture components for submarine maintenance and new construction.
Deputy Prime Minister Richard Marles has highlighted that increasing submarine construction rates must be accompanied by sufficient maintenance and sustainment capacity to support fleet operations.
Australia is expected to provide approximately 1,800 cumulative days of maintenance in partnership with the US Navy from the commencement of Submarine Rotational Force-West until the transfer of the first Virginia-class submarine to Australia in the early 2030s.
The rotational force will also support the development of Australian skills, systems and supply chains needed to operate and maintain nuclear-powered submarines and support the future construction and maintenance of SSN-AUKUS submarines.
More than 290 Australian personnel are currently in the US training pipeline across nuclear and non-nuclear streams, including approximately 150 gaining operational experience at sea.
The Australian Submarine Agency said the Mississippi facility was the latest example of Australia, the United Kingdom and the United States investing in the workforce, infrastructure and industrial capacity needed to support their respective submarine programs.
