As part of a new Australian AUKUS submarine industry strategy, shipbuilder HII has been awarded a $9.6 million (AUD) -- or roughly US$6 million -- contract to deliver a pilot program meant to integrate more Australian suppliers and products into the U.S. industrial base.
The Australian Submarine Supplier Qualification pilot program will be implemented over the next two years and will “accelerate the identification and qualification” of these Australian sources, according to an HII news release.
“This contract represents a significant milestone in building a resilient and globally integrated supply chain for nuclear-powered submarines,” HII CEO Chris Kastner said in a statement. “HII has a long history of working with suppliers to ensure they meet the highest standards in safety, security, and performance. We welcome Australian partners to help build out this critical nuclear shipbuilding capability and ensure the long-term success of AUKUS.”
The new Australian strategy released last week calls for AU$30 billion to be invested in the country’s industrial base and calls for further investment in workforce training and educational programs.
The U.S. has agreed to sell at least three Virginia-class submarines to Australia starting in the early 2030s, yet builders are currently unable to deliver these boats at a two-a-year cadence. Australia has pledged to give $3 billion to the U.S. to aid on-time production and has already delivered $500 million of this.
Elbridge Colby -- the Trump Administration’s pick for under secretary of defense for policy -- told lawmakers at his confirmation hearing last week that he does support AUKUS and called it a “model of the type of cooperation we need to meet the challenges of the 21st century.”
Yet, Colby did bring up concerns related to the U.S. shipbuilding industry’s ability to meet the country’s own force structure goals, as well as the targets to deliver boats to Australia by a certain date. The potential threat posed by China in the Indo-Pacific means the U.S. should be poised to defend itself with its own submarines, he said.
“If we can produce the attack submarines in sufficient number and [at] sufficient speed, then great,” Colby said. “But if we can’t, that becomes a very difficult problem because we don’t want our servicemen and women to be in a weaker position and more vulnerable and God forbid, worse, because they’re not in the right place at the right time.”