Rolls-Royce Secures £9 Billion Deal for UK's Naval Nuclear Reactors

Rolls-Royce has been awarded a £9 billion contract to design and maintain nuclear reactors for the UK's submarine fleet, boosting the Royal Navy's deterrent capabilities. The deal will save £400 million and create 1,000 jobs while supporting the AUKUS pact with the U.S. and Australia.

The UK government has sealed a significant £9 billion contract with Rolls-Royce to advance the design and support of nuclear reactors for its submarine fleet. This move fortifies the Royal Navy's nuclear deterrent strategy, ensuring at least one nuclear-armed submarine is always patrolling at sea.

This eight-year deal is poised to enhance the AUKUS defense partnership involving the United States and Australia while promising a £400 million saving for Britain by consolidating multiple contracts. Defense Minister John Healey highlighted its economic benefits, projecting the creation of 1,000 new jobs and preserving 4,000 others under the Unity contract.

Simultaneously, the agreement underlines the defense sector's role in the UK's economic growth, as the government anticipates its Strategic Defence Review. Amid rising geopolitical challenges, Britain plans to increase defense spending, aiming for 2.5% of GDP in response to NATO's advisories against threats from nations like Russia.

(With inputs from agencies.)