South Australia, Rolls-Royce sign AUKUS MOU

In a major boost to Australia’s AUKUS program, the South Australian government has reached a landmark agreement with British defence giant Rolls-Royce to boost Australia’s  skills and technology capability. Premier Peter Malinauskas today signed a memorandum of understanding (MOU) with Rolls-Royce that outlines a commitment to collaborate on workforce development, skills training, and critical technologies to support South Australia’s growing defence sector. The agreement was signed in London at the Defence and Security Equipment International. The MOU marks a significant step forward in South Australia’s preparations for the AUKUS submarine program, which will provide Australia with their first conventionally armed nuclear navy. It also highlights the unique nuclear expertise Rolls-Royce brings to the AUKUS agreement. Under the agreement, the South Australian Government and Rolls-Royce will co-design and implement initiatives to build a diverse and highly skilled workforce, with a particular focus on strengthening the STEM pipeline and addressing critical skills gaps for current and future defence projects. The MOU complements existing Australian and South Australian Government funded defence industry workforce development initiatives. South Australia is already investing heavily in workforce development, including: $208 million to establish five new technical colleges focused on advanced manufacturing and defence industry capabilities. The opening of Findon Technical College in 2024, with 230 students enrolled and strong links to defence and innovation hubs. A $450,000 commitment over three years to fast-track a software engineering degree apprenticeship pilot in partnership with the University of South Australia, defence industry, and the Australian Industry Group. Construction is underway for the South Australian-based Skills and Training Academy, where students will soon specialise in high-tech skills relevant to the state’s program of continuous naval shipbuilding. The Osborne Naval Shipyard campus will simulate a real submarine construction yard and, once open, welcome up to 1,000 students each year. In a major transformation of the higher education landscape, South Australia is establishing the new Adelaide University through the merger of the University of Adelaide and the University of South Australia. Opening in 2026, this industry-aligned institution will play a pivotal role in the state’s workforce uplift efforts. By 2034, Adelaide University is expected to contribute an estimated additional $500 million per year to the South Australian economy, educate more than 70,000 students and create an additional 1,200 jobs. South Australia is also positioning itself as a hub for international nuclear expertise ahead of AUKUS submarine construction. Flinders University has forged partnerships with leading nuclear science and technology institutions in the United Kingdom and United States, further strengthening the state’s global connections and capabilities. Rolls-Royce has powered the Royal Navy’s nuclear submarines for over 65 years and is expanding its Derby site to support both UK and Australian defence programs. In March 2023 it was confirmed that Rolls-Royce Submarines would provide all the nuclear reactor plants that will power new attack submarines as part of the trilateral AUKUS agreement. The MoU builds on previous engagement, including Rolls-Royce’s visit to Adelaide in 2024 and the company’s announcement to double the size of its Derby site to support the AUKUS program. The Premier visited the Rolls-Royce Nuclear Skills Academy in Derby, which takes on up to 200 apprentices each year, enabling a pipeline of talent at the start of their careers in support of the Royal Navy Submarines programme. South Australian Premier, Peter Malinauskas said: “South Australia is at the forefront of the nation’s defence industry, but we need to keep growing the skills and capabilities required to meet future defence needs. AUKUS presents a once-in-a-generation opportunity for our state. This MoU will help us build the workforce and industry capability needed to deliver on that opportunity. We are already seeing strong outcomes from existing agreements between the South Australian Government, our universities and businesses with counterparts from AUKUS nations – including supplier uplift and knowledge exchange programs. A skilled workforce is crucial to continuing our state’s leading role in defence project delivery to meet the nation’s growing security challenges, and this work has begun in earnest.” Stephen Mullighan said: “South Australia is proud to play a leading role in delivering on the AUKUS partnership. We’re focused on building the world-class infrastructure, developing a highly skilled sovereign workforce and supporting a capable, innovative industry that can meet the demands of this transformative national endeavour. This MOU with global defence leader Rolls-Royce is another important milestone to strengthening our workforce pipeline.” Steve Carlier, Rolls-Royce Submarines President, said: “We are incredibly proud to play our part in the development of the next generation of attack submarines for the Royal Navy, and equally proud to be supporting Australia in their mission to introduce nuclear powered submarines to their fleet. Nuclear submarines bring unsurpassed endurance, range, stealth, power and reliability that still provides the absolute pinnacle of military advantage. This MOU allows us to leverage our decades of experience to help South Australia develop a talented workforce and inspire the next generation of Australian nuclear engineers.” For Editorial Inquiries Contact: Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Group Sales Director Simon Hadfield at [email protected]