The Australian government has secured a strategic contract that positions local battery technology at the heart of the AUKUS submarine program, reinforcing the nation’s role as a global leader in defence innovation. South Australian firm PMB Defence has partnered with BAE Systems to integrate its advanced nickel zinc battery system into the design of the future conventionally-armed, nuclear-powered submarines—a move that could redefine the capabilities of the next generation of underwater warfare.
The collaboration, valued at over $34 million, marks a significant milestone in Australia’s defence industrial base, with PMB Defence already expanding its workforce by 20 employees in South Australia. As production scales up, the company anticipates further job growth, underscoring the economic and strategic benefits of the partnership.
“Australian industry is our greatest strategic asset,” said Minister for Defence Industry Pat Conroy. “The contract for the AUKUS design, which comes on the back of work PMB has secured for other Royal Navy submarines, will create dozens of new well-paid, high-skilled jobs for locals, on top of the hundreds at BAE and ASC that AUKUS has already delivered.”
The contract follows extensive collaboration between the Australian Submarine Agency, PMB Defence, and UK Ministry of Defence stakeholders, accelerating the entry of Australian products into UK and US submarine supply chains. PMB’s expertise is well-established, having supplied the main storage batteries for the Royal Australian Navy’s Collins-class submarines since 1996.
If successful in the design phase, these batteries will be manufactured at PMB’s South Australian facility, further solidifying Australia’s position as a key player in global submarine technology. The future SSN-AUKUS submarines are being developed trilaterally, drawing on the UK’s next-generation design and incorporating technology from all three AUKUS partners, including US submarine innovations such as propulsion systems, vertical launch systems, and conventional weapons.
Beyond hardware, the AUKUS partnership is fostering deeper integration in combat systems, with plans to expand the existing US-Australian combat system into a joint platform. This collaboration not only enhances operational readiness but also strengthens supply chain resilience across the three nations.
The deal underscores the growing importance of defence industrial partnerships in shaping the future of military technology. By leveraging Australian innovation, the AUKUS program is not only advancing submarine capabilities but also creating high-value jobs and reinforcing global defence alliances. As the program progresses, this collaboration could set a precedent for future defence projects, demonstrating how strategic partnerships can drive technological advancement and economic growth.