Ground has been broken on a new submarine manufacturing facility in Mississippi, marking a significant milestone in efforts to strengthen AUKUS supply chains and support Australia’s future acquisition of Virginia-class submarines.
The new Propulsor Center of Excellence, being established by Bird-Johnson Propeller Company in Pascagoula, Mississippi, will increase production of critical submarine components used in the Virginia-class submarine program.
The project is being supported through combined Australian and US investment as part of broader efforts to strengthen the US submarine industrial base to increase production and sustainment capacity.
Australia has committed to making a fair and proportionate contribution of USD $3 billion to support increased production and sustainment capacity within the US submarine industrial base. This investment will help underpin Australia’s acquisition of Virginia-class submarines from the early 2030s and contribute to a peaceful, stable and prosperous Indo-Pacific.
Australia’s contributions are consistent with Australia’s domestic and international legal obligations, including its non-proliferation commitments.
Once operational, the new facility will provide additional capacity to manufacture submarine propulsor rotors and other critical components essential to the production of Virginia-class submarines.
Propulsor rotors play an important role in generating the thrust that drives a submarine through the water.
Virginia-class submarines use advanced propulsion technology, which offers improved stealth through a reduced acoustic signature while maintaining high levels of efficiency underwater.
The US Government is investing substantially into its own submarine industrial base to support initiatives related to supplier development, shipbuilder and supplier infrastructure, workforce development, technology advancements, strategic sourcing and government oversight.
Australian Submarine Agency officials were present at the ground breaking ceremony in Pascagoula on 20 October 2026.
Phoebe Greentree, Minister-Counsellor for AUKUS at the Australian Embassy welcomed the investment and highlighted how it will deliver critical components for the United States submarine program using Australia’s contribution to support the industrial capacity needed to deliver AUKUS.
“This milestone demonstrates the continued momentum and shared commitment of Australia and the United States to deliver Australia’s conventionally armed, nuclear-powered submarine capability” Ms Greentree said.
The ground breaking follows the U.S. Government’s announcement of a combined investment of up to US$6.6 billion by the US Navy and Anduril into a new shipyard at Sparrows Point, Maryland.
The Maryland shipyard will be the largest of its kind in the US and will produce components to meet submarine maintenance and new construction requirements.
At the Defence Horizon breakfast last week, Deputy Prime Minister Richard Marles welcomed the Maryland announcement, noting the new shipyard will result in an increase in the construction of Virginia-class submarines.
“We are seeing an uplift in the rate of construction, and the schedule is on queue… to achieving what we need to see it achieve by the early 2030s in order to create the space for us to be able to purchase the first of the Virginia Classes”.
Deputy Prime Minister Marles highlighted how increasing submarine construction rates was only part of the challenge, with maintenance and sustainment capacity equally important.
“And actually, what the West does, like what Stirling does, what in time Henderson will do, is really dramatically improve the number of sea days for the Navy, for the US Navy, which is why ultimately I am very confident that there will be the conditions met for us to acquire that Virginia Class said Mr Marles.
Australia is expected to provide approximately 1800 days of cumulative maintenance in partnership with the US Navy from the commencement of Submarine Rotational Force-West (SRF-W) until the transfer of the first Virginia Class Submarine to Australia in the early 2030s.
SRF-West will further accelerate the development of Australia’s ability to operate, maintain and safely steward our future conventionally-armed, nuclear-powered submarines. It will also strengthen the skills, systems and supply chains required for Australia to build and maintain our future SSN-AUKUS submarines.
More than 290 Australian personnel are currently in the US training pipeline, across both nuclear and non-nuclear streams, including approximately 150 personnel gaining operational experience at sea.
The start of construction on this new facility in Mississippi is the latest example of how Australia, the UK and the US are investing in the people, infrastructure and industrial capacity to deliver AUKUS and support their respective submarine programs.
