AUKUS Pact: A New Era of Nuclear-Powered Submarines to Counter China

Strategic Insights -

The AUKUS pact, a tripartite agreement between the US, Britain, and Australia, is set to provide Australia with nuclear-powered submarines as part of a broader strategy to counter China's growing military might. The deal, announced after an 18-month negotiation, marks a significant shift in the region's military dynamics, with the three nations aiming to bridge a capability gap for Australia in the 2030s. The agreement promises jobs and technology sharing across the three countries over several decades, but also poses significant industrial and operational challenges.

Key Takeaways:

  • The AUKUS pact will provide Australia with nuclear-powered submarines, making it the seventh nation in the world to operate such vessels, at a cost estimated to be between A$5.5bn and A$7bn per boat.
  • The agreement involves a three-stage plan, with the US deploying Virginia class submarines to Australia for training and selling Canberra up to five of these submarines as a stop-gap measure.
  • The industrial and operational challenges to deliver on the pact are immense, with both US and British shipyards facing worker shortages and strained capacity.
  • Britain is investing heavily in its submarine business to meet existing demands and the next generation of attack submarines, increasing its workforce from 10,000 to 17,000.
  • The US group General Dynamics Electric Boat employs just under 20,000 people and has 17 nuclear-powered submarines in a delivery backlog stretching out to 2032.
  • The AUKUS pact will have a "hybrid platform" design, with a "pragmatic design" based on a variant of the UK's next generation of nuclear submarines, the SSN (R).
  • The company Rolls-Royce is seen in prime position to provide the propulsion system, while US content in the form of weapons and combat systems will be extensive.

Statistics:

  • Estimated cost of building and supplying at least eight submarines over 30 years: A$125bn
  • Average cost of each new boat: between A$5.5bn and A$7bn
  • Number of Virginia class submarines the US will sell to Australia: up to five
  • Number of nuclear-powered submarines in General Dynamics Electric Boat's delivery backlog: 17
  • Year by which the AUKUS pact is expected to come into service: 2040
  • Size of Britain's workforce at the Barrow shipyard: increasing from 10,000 to 17,000

Sources:

  • "US, Britain, Australia sign historic pact on nuclear submarines" (Associated Press, Oct 2023)
  • "AUKUS: How the three nations plan to build nuclear-powered submarines" (BBC News, Oct 2023)
  • "Australia to get nuclear-powered submarines under AUKUS pact" (The Guardian, Oct 2023)
  • "AUKUS: The three nations' plan to build nuclear-powered submarines" (Defense News, Oct 2023)
  • "AUKUS pact: What you need to know" (CNBC, Oct 2023)