Rolls-Royce has signed a memorandum of understanding with the Victorian Government to develop defence industry skills, technology, and supply chain capabilities in support of the AUKUS submarine programme.
The agreement aims to advance Victoria’s role in nuclear and defence manufacturing by focusing on workforce training, research collaboration, and local industry participation. Discussions are underway to establish a Rolls-Royce-linked skills and training academy in Victoria, modelled on the Nuclear Skills Academy in Derby, UK.
Steve Carlier, Rolls-Royce Submarines President, said the partnership will unite Victoria’s advanced research and innovation ecosystem with the company’s established nuclear expertise to support Australia’s goal of introducing nuclear-powered submarines to its fleet. He noted that nuclear submarines “bring unsurpassed endurance, range, stealth, power and reliability that still provide the absolute pinnacle of military advantage.” He added that the agreement will help Rolls-Royce “support Australia in establishing a sustainable supply chain in-country, while developing home-grown nuclear talent and well-paid careers for Australian people.”
Plans include launching joint research initiatives with Victorian universities, potentially through new University Technology Centres and innovation clusters. These would focus on advancing nuclear propulsion and related technologies that underpin the future AUKUS fleet.
Colin Brooks, Victoria’s Minister for Industry and Advanced Manufacturing, said the partnership would build on a strong foundation of economic and employment contributions from the state’s defence sector. “Our defence sector contributes billions to our economy every year and supports more than 29,000 jobs − this agreement will help ensure we continue to have a skilled pipeline of workers in this critical sector.”
The partnership builds on previous agreements between Rolls-Royce and the Western and South Australian governments, aligning with Australia’s broader strategy to expand its domestic capability for operating conventionally armed, nuclear-powered submarines.
Victoria’s government has already prioritised defence-related growth under its Economic Growth Statement, released in late 2024. This includes measures to boost SME participation, strengthen manufacturing, and enhance local supply chain competitiveness for AUKUS contracts.
Rolls-Royce will play a central role in supplying and supporting the nuclear reactor plants for the new submarines, leveraging more than six decades of experience powering the UK Royal Navy fleet. Its expansion in Derby will also serve both UK and Australian programmes, reinforcing the company’s status as the only private entity capable of managing nuclear reactor design, production, and decommissioning under one roof.
The partnership represents a strategic step in building sovereign nuclear capabilities while connecting Victorian industry with one of the world’s leading defence suppliers.
