**Location and Event Details**
SYDNEY — Australia faces significant challenges in maintaining its aging Collins-class diesel-electric submarines while transitioning to nuclear-powered submarines. This transition includes acquiring second-hand Virginia-class submarines from the United States and eventually moving to SSN-AUKUS submarines that are developed in collaboration with the U.K. The discussions surrounding this transition took place at the Indo-Pacific 2025 naval exhibition held in Sydney from November 4-6, 2025.
**Key Official Insights**
Rear Adm. Stephen Hughes, head of naval capability for the Royal Australian Navy (RAN), expressed a cautiously optimistic view regarding the risks associated with extending the Collins-class lifespan and advancing the SSN programs. He acknowledged potential challenges, stating, “Are they high risk? Sure – schedules, demanding technologies, the workforce is demanding.” Nevertheless, Hughes emphasized the RAN’s strong capability in risk management.
**Industry Involvement**
During the Indo-Pacific 2025 event, significant attention was given to the agreements concerning the SSN-AUKUS submarine program. On November 5, four major defense companies—BAE Systems, General Dynamics Mission Systems, Raytheon Australia, and Thales—announced a teaming arrangement to develop a trinational command system, leveraging General Dynamics’ existing AN/BYG-1 system, which is already utilized in the Collins-class submarines.
Another notable announcement on November 4 involved a strategic agreement with South Australian firm PMB Defence to provide nickel-zinc batteries. PMB Defence collaborates with BAE Systems and has existing contracts valued over $22 million.
**Future Prospects**
The Australian Navy remains optimistic about its future capabilities, with Hughes referencing past commitments from U.S. President Donald Trump to the AUKUS program. In June 2024, a joint venture named H&B Defence was formed by HII and Babcock to support the AUKUS submarine project. An expression of interest was issued, attracting responses from 378 Australian companies, with several already meeting HHI’s standards.
Eric Chewning, executive vice president for maritime systems at HII, noted a 15% increase in throughput at shipyards and emphasized the importance of a distributed shipbuilding model to alleviate production bottlenecks.
**Reactor Developments**
Rolls-Royce is the sole private company producing nuclear reactors for submarines and is supplying PWR3+ power plants for the SSN-AUKUS boats. Steve Carlier, president of Rolls-Royce Submarines, indicated that the improved reactor design allows for greater operational flexibility and safety. The preliminary design review for the SSN-AUKUS is expected to be completed by September 2026.
**Upcoming Milestones**
Hughes confirmed that the first Collins-class submarine, HMAS Farncomb, will undergo a two-year life-of-type extension (LOTE) program starting next year, aimed at extending the submarine’s operational life by an additional ten years as the new SSN fleet is anticipated.
**Author Background**
Gordon Arthur, the writer of this report, serves as an Asia correspondent for Defense News, having spent 20 years in Hong Kong and currently residing in New Zealand. He has covered military exercises and defense exhibitions across approximately 20 countries in the Asia-Pacific region.
