Here in the US, the Pentagon has just awarded a long-awaited submarine contract that could have big implications for the AUKUS deal.
The contract is for nine nuclear-powered Virginia-class submarines. That’s the type of boat that Australia hopes to buy from the US under AUKUS.
The US Navy is aiming to double the pace of construction so it can sell between three and five submarines from its fleet to Australia. The terms of the AUKUS deal mean the US will only sell the submarines if new ones are built quickly enough to replace them.
The contract has now been awarded to Navy shipbuilder Electric Boat.
Democratic congressman Joe Courtney — a founder of the bipartisan AUKUS Working Group — had been advocating to get the contract finalised.
Back in March, he wrote to the Pentagon, warning the “long-delayed execution” of the contract was “creating uncertainty for the suppliers and shipbuilders who depend on long-lead planning”.
In a statement today, he said the new contract would stimulate growth in submarine-building.
“Crucially, the thousands of small business manufacturers who are essential to the industrial base now have the certainty they have been asking for to make needed investments in hiring, facilities, and equipment,” he said.
However, there are still major challenges for US shipbuilding to reach its targets, and some expert analysts doubt it will happen.
Read our previous story about the hold-up awarding the contract, and other issues that could impact the AUKUS plan, here:
