The funding is part of a broader commitment from Australia, a total investment of $3 billion into the U.S. submarine industrial base.
Submarine maker Electric Boat has been awarded a $196 million U.S. Navy contract, the first major deal to deliver on the AUKUS security compact with Australia and the United Kingdom.
The funding is part of a broader commitment from Australia under AUKUS, which includes a total investment of $3 billion into the U.S. submarine industrial base.
The new contract funds engineering, technical and design work to support the transfer of nuclear-powered submarine capabilities from the U.S. to Australia.
Australia intends to buy a number of Virginia-class submarines from the U.S., likely in the 2030s.
Groton’s Electric Boat will need to almost double the pace of submarine construction, to 2.33 boats per year, to fulfill the deal. The company is looking to hire 8,000 workers this year to service the demand, alongside its work on Virginia and Columbia class boats for the U.S. Navy. It’s a level of hiring the yard has not seen in some two decades.
“These funds are proof that AUKUS is not just a plan on white boards but a real enterprise that eastern Connecticut will make a success,” Rep. Joe Courtney said in a statement on the contract.
