Defence
Rolls-Royce Secures Landmark £9bn Nuclear Submarine Deal with UK Government
Rolls-Royce has secured a £9bn contract with the UK Ministry of Defence to supply nuclear submarine reactors. This to strengthen Britain’s defence capabilities and the AUKUS alliance with the United States and Australia.
A Deal of Strategic Importance
Defence Secretary John Healey announced the deal—codenamed “Unity”—during a visit to Rolls-Royce’s nuclear reactor production facility in Derby. The deal marks the largest agreement between the government and the aerospace giant. The contract aims to enhance national security, support naval operations, and ensure long-term job growth in the defence sector.
“This investment in Britain’s defence will deliver a long-term boost to British business, jobs, and national security,” Healey said, emphasizing that Derby plays a crucial role in the nation’s defence strategy amid growing global threats.
Today we welcomed the Secretary of State for Defence, Rt Hon John Healey MP, to our Nuclear Skills Academy to mark the signing of the landmark Unity contract with the UK MoD. Read more: https://t.co/QQpSDjNjKo pic.twitter.com/RuuBtQAyCS
— Rolls-Royce (@RollsRoyce) January 24, 2025
Economic and Job Growth Impact
The Unity contract is expected to create more than 1,000 new jobs in the UK while safeguarding 4,000 existing roles. Rolls-Royce has been expanding its submarine division, including developing new production facilities and establishing a Nuclear Skills Academy in Derby, which provides 200 apprenticeships annually.
Local leaders, including Derby South MP Baggy Shanker, hailed the agreement as a “landmark deal” that will secure employment and make operations more efficient and cost-effective for taxpayers. The UK government estimates the deal will save £400m by streamlining previous contracts and optimizing production.
Powering the UK’s Future Submarines
Britain’s nuclear submarine deal includes reactor production for the Royal Navy’s new Dreadnought-class submarines, maintaining the UK’s continuous at-sea nuclear deterrent. Additionally, it covers the initial phases of the AUKUS defence alliance, which will see the development of next-generation submarines for Australia.
AUKUS, announced in 2023, is a trilateral agreement between the UK, the US, and Australia to strengthen military cooperation in the Indo-Pacific region. Under the pact, Rolls-Royce will provide nuclear reactors for the newly developed submarines, which will be built in Britain and Australia using technology from all three nations.
The announcement comes amid heightened geopolitical tensions, including rising threats from Russia. Days before the deal was revealed, Defence Secretary Healey warned Parliament about Russian spy ships operating near UK waters. The nuclear deterrent program is a crucial measure to counter potential aggression.
“Britain is safe, its people are safe, and they are safe because of our armed forces and the extraordinary job they do,” Healey stated. “But I don’t want to mislead people—we face rising threats and immediate aggression from Russia.”
Commitment to British Innovation
Rolls-Royce Submarines president Steve Carlier emphasized that the Unity contract reinforces the company’s commitment to the Royal Navy and the UK’s broader defence strategy. The company has been expanding its operations, doubling the size of its Raynesway site and moving into new, high-tech warehouses in Derby.
Sharon Graham, the general secretary of the Unite union, praised the deal as “good news for British jobs, Derby, and the economy.”
As the UK continues to modernize its defence capabilities, this partnership between Rolls-Royce and the Ministry of Defence is Britain’s renewed strategic focus on national security, economic growth, and global military cooperation.
