Rolls-Royce to build nuclear reactors for UK’s submarine fleet

The UK government has awarded a £9 billion ($11 billion) contract to Rolls-Royce to design and manufacture nuclear reactors for the country’s submarine fleet.

This deal underscores Prime Minister Keir Starmer’s Labour government’s commitment to maintaining the UK's nuclear deterrent.

Under the eight-year contract, known as "Unity," Rolls-Royce Submarines Ltd. will also provide support services for the nuclear reactors on the submarines.

The Ministry of Defence confirmed the agreement on January 24, noting that the project will create over 1,000 new jobs while helping to sustain an additional 4,000 existing positions, Caliber.Az reports referring to international media.

Amid increasing pressure to raise defence spending to 2.5% of the nation’s GDP, Labour is eager to reinforce its security credentials. The party has emphasized its unwavering commitment to the UK's nuclear deterrent, a promise made during last year’s election campaign.

“National security is a foundation of our government’s plan,” stated Defence Secretary John Healey. “This deal clearly demonstrates our commitment to the UK's nuclear deterrent, which remains our ultimate insurance policy in an increasingly dangerous world.”

This contract represents a significant boost for Rolls-Royce, which in 2023 announced plans to nearly double the capacity of its submarine plant in Derby. The expansion is intended to meet rising demands from the Royal Navy and the AUKUS defence partnership, which includes the UK, the US, and Australia. Healey is set to make the official announcement at the Derby factory on Friday.

Steve Carlier, President of Rolls-Royce Submarines, emphasized the importance of the contract in strengthening the UK’s defence capabilities. “This long-term commitment allows us to invest in the right skills, equipment, and facilities to support and protect the UK’s interests both domestically and internationally,” Carlier said.

The deal follows recent statements from Healey, who disclosed that a Russian spy ship had twice entered British waters in recent weeks. In one instance, he authorized a submarine to surface nearby, signalling that the UK had been covertly monitoring the vessel.

In the lead-up to the July 4 elections, Labour introduced a “triple-lock” commitment to the UK’s nuclear deterrent, aiming to distance Starmer from his predecessor, Jeremy Corbyn. Corbyn, a longtime opponent of nuclear weapons, had been noncommittal about the UK’s nuclear arsenal. In contrast, Starmer has pledged to maintain the UK’s at-sea deterrent “24 hours a day, 365 days a year,” ensure necessary upgrades and build four new nuclear submarines to enhance the country’s defence.

By Tamilla Hasanova