More than $250 million will be spent to develop local supply chains to support the AUKUS nuclear-powered submarine program.
Deputy Prime Minister Richard Marles said the additional $262 million would support existing programs and launch new initiatives to enhance Australia’s defence industry.
“(AUKUS) will be one of the greatest industrial endeavours in Australian history,” Minister Marles said.
“Australian industry and jobs are at the forefront of the build and sustainment of our next generation conventionally-armed, nuclear-powered submarines (and) will also play a vital role in growing more robust and resilient supply chains between Australia, the United Kingdom and the United States.”
He said over the next two years a range of initiatives would be funded to uplift the local defence industry, supporting around 125 businesses across Australia to invest in the capabilities needed to meet the high standards of submarine build and sustainment activities in AUKUS nations.
Minister Marles said the first tranche of funding would support industry through:
- The Defence Industry Development Grants Program: Further investment into eligible Australian businesses intending to participate in the AUKUS submarine supply chain to receive timely uplift funding for security, skills, international accreditations and manufacturing capital equipment for defence domestic or export supply chains.
- The Global Supply Chain Program: Expanding the program to support major UK and US submarine industry suppliers to provide commercial opportunities for Australian suppliers and increase Australian participation in trilateral supply chains.
- The Defence Industry Vendor Qualification Program: Expanding and accelerating the qualification of Australian products (including, mechanical assemblies, castings, forgings, electro-mechanical components) into US submarine supply chains. This includes working with AUKUS partners to streamline processes and reduce regulatory friction for Australian business.
Further information can be found on the Australian Submarine Agency website.
