Navigating AUKUS: Submarine Technology's Licensing Labyrinth

The U.S. still controls sensitive defense exports despite relaxed rules for AUKUS partner Australia, particularly affecting submarines. Delays in U.S. Virginia-class submarine production may impede Australia's purchase of three submarines. Licensing issues for advanced technologies hinder collaborations. Australian firms face challenges joining the U.S. defense supply chain.

The United States is still maintaining strict controls over sensitive defense exports to AUKUS partners, particularly affecting submarines despite relaxed rules for Australia last year. These controls are creating hurdles for collaboration in the U.S. Virginia-class submarine production, according to officials and industry executives.

A key issue is whether the United States can overcome production delays to meet Navy targets, crucial for Australia's purchase of three Virginia-class nuclear-powered submarines under the AUKUS agreement, as mentioned by Defence Minister Richard Marles. Australia faces a 2025 deadline to allocate $2 billion towards the $3 billion pledged to bolster the U.S. submarine industrial base. An executive order issued by President Donald Trump tasked Elon Musk's Department of Government Efficiency with reviewing Navy procurement policies.

Efforts to integrate Australian companies into the Virginia-class submarine's U.S. supply chain have seen slow progress due to a lengthy licensing process for advanced technologies. Despite lifting some trade barriers, submarine technology remains on the Excluded Technology List, as noted by Kylie Wright of Australia's Department of Defence. Australian component manufacturers are struggling to bid in the U.S. naval supply chain, and significant efforts are being made to ensure seamless technology transfer to meet AUKUS goals.

(With inputs from agencies.)