WHY IMPORTANT TO WISCONSIN: The largest defense modernization program in Australia’s history could offer partnership opportunities for suppliers in the U.S., including Wisconsin.
Plans for the AUKUS submarine pact are moving forward, with strategic legislation passed and a major construction contract signed.
AUKUS is the U.S., United Kingdom, and Australia partnership to boost defense in the Indo-Pacific waters by providing three U.S.-built, nuclear-powered submarines to Australia. The pact was established in 2021, and the submarine plan was launched in 2023.
In December 2023, the U.S. Congress included a historic export exemption clause in the National Defense Authorization Act for fiscal 2024 that will streamline defense-related trade with the UK and Australia. In March 2024, Australia approved a similar provision, and the UK government is working on a reciprocal exemption.
Leaders of the three countries announced the advances in April 2024 as they reaffirmed their commitment to the defense project.
Meanwhile, Australia has selected ASC Pty Ltd and BAE Systems to build its SSN-AUKUS submarines. ASC will also serve as Australia’s nuclear-powered submarine sustainment partner.
All three countries are making significant investments in their submarine industrial bases to ensure that all of their supply chains are more resilient, integrated, and productive. Joint training activities also have begun, the leaders said.
The project is Australia’s largest investment in its defense systems in the country’s history. It calls for spending $6 billion AUD ($4 billion USD) to expand the country’s industrial capacity and its workforce over four years and a $368 billion AUD ($250 billion USD) commitment over the next 30 years, creating about 20,000 jobs.
As AUKUS continues to build momentum, opportunities are expected to arise for strategic partnerships, and Wisconsin companies currently supplying products or services for nuclear submarines could be part of that market.
In the long term, Australia has acknowledged the need for support in areas such as undersea capability, quantum technologies, artificial intelligence, advanced cybertechnology, and electronic warfare.
Wisconsin companies with expertise in those areas are encouraged to visit Australia or participate in a trade event.
The Indo Pacific International Maritime Exposition is the region’s largest naval-focused industry event, attracting exhibitors and government delegations from around the world. It will be held Nov. 4-6, 2025, at the International Convention Centre in Sydney.
