"HII to Strengthen Nuclear-Powered Submarine Supply Chain"

In a significant move to bolster the global supply chain for nuclear-powered submarines, Huntington Ingalls Industries (HII), the largest military shipbuilder in the United States, has been awarded a contract to lead the Australian Submarine Supplier Qualification (AUSSQ) pilot program. This initiative, valued at $9.6 million (AUD) with the option to extend, aims to accelerate the identification and qualification of Australian suppliers and products into the U.S. submarine industrial base. The program is a critical component of the AUKUS trilateral security partnership between Australia, the United Kingdom, and the United States, and it underscores the growing importance of a resilient and globally integrated supply chain for nuclear-powered submarines.



The AUSSQ pilot program is part of the Australian Government’s comprehensive “AUKUS Submarine Industry Strategy,” released on March 5, 2025. This strategy outlines the conditions needed to develop a sovereign industrial capability to deliver, operate, and sustain future conventionally-armed, nuclear-powered submarines. It also ensures that Australia’s existing Collins-class submarines are sustained and upgraded until their eventual withdrawal from service. The program uses a B2B model, enabling HII Australia to work directly with Australian businesses to qualify both the businesses and their products, and subsequently assist them to tender for supply into the U.S. programs.

HII’s extensive experience in managing complex supplier networks for U.S. Navy nuclear-powered submarine programs and maintaining a strong nuclear stewardship culture for the U.S. Department of Energy (DOE) on critical national security projects positions them well to support Australian industry in meeting the stringent requirements for nuclear-powered submarine construction. The company’s expertise in quality assurance, safety, and technical training will be instrumental in helping Australian suppliers navigate the technical intricacies of nuclear submarine components.

The program also focuses on assessing and developing Australian suppliers, providing technical guidance, and implementing best practices to ensure compliance with the precise specifications required for nuclear submarine components. By leveraging HII’s deep experience in supply chain management and industrial base expansion, the program aims to establish a sustainable pipeline of qualified suppliers, reinforcing the broader AUKUS effort.

The AUSSQ pilot program is not just about enhancing the supply chain; it is also about creating high-skilled, well-paid jobs in Australia. Premier Peter Malinauskas of South Australia highlighted that "AUKUS presents an incredible opportunity to grow high-skilled, well paid jobs at Osborne, building the most complicated machines in human history." This initiative not only supports the local economy but also positions Australia as a key player in the global defense industry.

The program’s long-term economic and strategic benefits are substantial. By developing a robust industrial base, Australia can ensure the long-term sustainability and security of its defense capabilities. The program’s focus on quality assurance, safety, and technical training aligns with the stringent requirements for nuclear-powered submarine construction. HII’s expertise in these areas will support Australian industry in meeting these requirements, as evidenced by their experience managing complex supplier networks for U.S. Navy nuclear-powered submarine programs.

In summary, the AUSSQ pilot program is a significant step towards developing a sovereign and robust industrial base in Australia. It integrates local suppliers into the global supply chain, creates high-skilled jobs, and ensures the long-term sustainability of defense capabilities. The potential long-term economic and strategic benefits include a strengthened defense industry, enhanced global competitiveness, and improved national security. As Chris Kastner, president and CEO of HII, stated, “This contract represents a significant milestone in building a resilient and globally integrated supply chain for nuclear-powered submarines.” The AUSSQ pilot program is a testament to HII’s commitment to fostering industry growth and innovation in Australia and among all U.S. allies, paving the way for strategic business development within a global supply chain.