Rolls-Royce has been awarded an £9 billion ($11 billion) eight-year contract by the UK government to design, manufacture, and provide support services for nuclear reactors powering the
nation’s submarine fleet. The new agreement, known as the Unity contract, is set to create 1,000 new jobs while safeguarding 4,000 existing ones.
The contract will also support ongoing work on the Dreadnought class of nuclear submarines, which are currently under construction. This initiative aims to bolster Britain’s continuous at-sea deterrent, a policy ensuring that at least one nuclear-armed ballistic missile submarine patrols the seas at all times.
The Ministry of Defence (MOD) emphasized the deal’s role in reinforcing the AUKUS defense alliance between the UK, the United States, and Australia. The AUKUS pact, a cornerstone of Western security, includes commitments to developing and sharing advanced defense technologies and capabilities.
Defence Minister John Healey highlighted the financial and economic benefits of the Unity contract, stating it would save £400 million over eight years by consolidating multiple contracts into one. “It’s a boost to British jobs, British business, and our nuclear deterrent,” Healey told Sky News during a visit to Rolls-Royce’s nuclear reactor production facility in Derby.
He also noted the contract as an example of how the defense sector contributes to economic growth in the UK.
The announcement comes as Britain’s defense industry, led by companies like BAE Systems, anticipates growth through increased spending and new projects. The government has committed to raising defense spending to 2.5% of GDP in response to NATO’s call for member states to enhance their defense budgets amid heightened security threats from Russia.
The Dreadnought program and the AUKUS pact are expected to drive significant expansion in Britain’s nuclear submarine capabilities. This includes building new vessels for the UK’s fleet and Australia’s first nuclear-powered submarines under the trilateral agreement.
Additionally, the government’s Strategic Defence Review, slated for release in the spring, is expected to outline further priorities for Britain’s defense strategy. Healey reiterated the government’s commitment to meeting these objectives despite speculation about potential delays.
This contract underscores the critical role of the defense sector in national security and economic growth, solidifying Rolls-Royce’s position at the heart of the UK’s nuclear deterrence strategy. Photo by Chris J Dixon, Wikimedia commons.