BAE Wins Contract For AUKUS Sub Production As UK-Aus Hold 2+2 Meeting

British defence contractor BAE Systems has been announced as having won the contract to construct Australia's next generation of nuclear-powered submarines in joint agreement with Australian defence firm ASC Pty. The boats are due to enter service in the 2040s, following on from (increasungly imperilled) expectations of US-made Virginia Class subs entering service in the Royal Australian Navy in the 2030s as part of the AUKUS agreement's 'Pillar I'.

• The Guardian notes that "The nuclear reactors for the boats are to be manufactured at Rolls-Royce in the English city of Derby, but doubts have already been raised about whether reactor cores will be made in time for the UK’s first Dreadnought nuclear submarine. Australia has now allocated £2.4bn over 10 years to expand the production capacity at Derby to deliver reactors for Australia’s submarines, to be known as SSN-Aukus."
• The announcement comes a day ahead of the annual 2+2 meeting between UK and Australian foreign and defence secretaries, set to take place in the South Australian city of Adelaide.
• There are increasing concerns about the robustness of AUKUS' aims. The latest White House budget only includes funding for the building of one Virginia Class submarine in 2025. Australia is set to receive three such boats by the 2030s but under current production schedules this could prove an unrealistic target.
• The success, or lack thereof, of the AUKUS alliance will have major security and geopolitical implications for the entire Indo-Pacific region given the increased tensions in the region in recent years.