Rolls-Royce has announced the signing of the largest contract in its history with the UK Ministry of Defense (MoD), securing an eight-year, £9 billion ($ 11,16 billion) agreement to support the Royal Navy’s nuclear submarine fleet.
Known as the Unity contract, the deal encompasses all aspects of research, design, manufacturing, and in-service support of nuclear reactors that power the Royal Navy’s submarines.
The agreement includes full support for the current submarine fleet, continued work on the Dreadnought-class submarines, and the start of the SSN-AUKUS program—a cornerstone of the UK’s defense nuclear enterprise.
“This investment in Britain’s defense will deliver a long-term boost to British business, jobs, and national security,” said Defence Secretary John Healey. “We are showing that defense can be an engine for growth while delivering better value for taxpayer money. This contract underscores the UK’s unwavering commitment to its nuclear deterrent as an ultimate insurance policy in an increasingly uncertain world.”
The Unity contract also signals the government’s broader commitment to bolstering the UK’s defence industrial strategy, with the deal expected to create 1,000 new high-skilled jobs within Rolls-Royce Submarines by the end of the contract period. These roles will primarily be based in Derby, with additional offices in Glasgow and Cardiff, contributing to the UK’s regional economic development.
Steve Carlier, President of Rolls-Royce Submarines, described the contract as a pivotal moment for both the company and the Royal Navy. “This long-term contract enables us to invest in the right skills, equipment, and facilities to play our part in protecting UK interests at home and overseas,” Carlier said. “Unity strengthens collaboration with the Ministry of Defence, allowing us to meet the evolving needs of the UK Royal Navy while enhancing reactor plant design and delivery.”
The agreement represents a culmination of years of planning, with the goal of fostering a more efficient and collaborative working relationship between Rolls-Royce and the MoD. By streamlining commercial arrangements, the contract aims to improve agility and resilience within the Defence Nuclear Enterprise.
Sir Chris Gardner, CEO of the Submarine Delivery Agency, emphasized the broader implications of the deal: “The Unity contract is a key milestone in our partnership with Rolls-Royce, enabling resilience, collaboration, and capability. It will support the Royal Navy’s submarines now and into the future while nurturing a critical pipeline of home-grown nuclear skills.”