The approximately USD 2 million order covers the supply of HY80-grade steel plates to be used in the production of Virginia-class submarines. The agreement is regarded as one of the key milestones in defense industry cooperation between Australia and the US under the AUKUS partnership.
The order follows Bisalloy's completion of the required qualification process under the Australian Government's Defence Industry Vendor Qualification (DIVQ) Program, enabling the company to meet the US Navy's structural steel standards. The program aims to integrate Australian companies into the US submarine supply chain while strengthening Australia's defense industrial capability.
The qualification process was carried out jointly by Bisalloy, BlueScope, the Australian Submarine Agency, General Dynamics Electric Boat, and the relevant technical divisions of the US Navy.
Under the production process, BlueScope will manufacture the raw steel plates, while Bisalloy will apply specialized processing and heat treatment to convert the plates into HY80-grade steel suitable for submarine applications.
The Australian Government stated that steel supply is critical to the US plans to expand its submarine production capacity and emphasized that the participation of Australian industry will strengthen the joint production capability under the AUKUS partnership.
The initial order is also expected to contribute to developing the manufacturing capabilities required for the nuclear-powered submarines that Australia plans to build in the future. The project is expected to enhance the technical expertise of the domestic industry and pave the way for broader participation in future submarine programs.
Australian Minister for Defence Industry Pat Conroy stated that the contract represents a major milestone for both Australian industry and the AUKUS partnership. He emphasized that the use of Australian-made steel in US Virginia-class submarines for the first time demonstrates Australia's advanced manufacturing capabilities and its contribution to allied defense industries.
Meanwhile, the Australian Government recently announced an additional investment of AUD 4.6 billion to develop the infrastructure required for the nuclear-powered submarines under the AUKUS partnership. With this investment, the total funding committed to the Osborne Naval Shipyard has increased to AUD 8.5 billion.
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