Australian Steel to Support Virginia-class Submarine Construction

30 Juli 2026

Steel manufacturing at Bisalloy Steel, Australia (photo: Bialloy Steel)

Australian-made submarine grade steel will be used in the build of United States (US) Navy Virginia-class submarines for the first time, demonstrating the growing contribution Australian industry is making to the trilateral submarine industrial base under AUKUS. 

Bisalloy Steel has received a purchase order from US shipbuilder General Dynamics Electric Boat (GDEB) valued at approximately US$2 million for HY80 steel plate to support the production and construction of Virginia-class submarines. The order highlights the world-class capabilities of Australia’s manufacturing sector and reflects the growing integration of Australian industry into allied submarine supply chains.

This milestone contributes to the Albanese Government's commitment to growing Australian industry participation in AUKUS and strengthening Australia's sovereign industrial capability.

The landmark order follows Bisalloy’s successful qualification to the US Navy's rigorous structural steel standards through the Australian Government’s Defence Industry Vendor Qualification (DIVQ) Program. The DIVQ Program is helping Australian companies enter US submarine supply chains while strengthening Australia’s sovereign industrial capability.

The qualification process involved close collaboration between Bisalloy, BlueScope, the Australian Submarine Agency, GDEB and the US Direct Reporting Portfolio Manager for Submarines, to demonstrate Australian industry's ability to meet the stringent standards required for submarine construction.

Virgina class submarine in the production line at US shipbuilder General Dynamics Electric Boat. Under AUKUS pact, Australia will receive three Virginia class submarine ex US Navy  (photo: GDEB)

BlueScope manufactures the raw steel plate, while Bisalloy undertakes the specialised processing and heat treatment required to produce submarine-grade HY80 steel.

The US continues to expand capacity within its submarine industrial base and has identified steel supply as a key industrial priority. Australian industry participation supports this effort, strengthens resilience across the trilateral submarine industrial base, and creates new opportunities for local manufacturers.

The order will provide valuable production experience for Australian industry and position Australian companies to compete for future opportunities. It also demonstrates how AUKUS is delivering tangible benefits for Australian industry, supporting skilled jobs and building the industrial capability needed to underpin Australia’s nuclear-powered submarine program.

Quotes attributable to Minister for Defence Industry Pat Conroy

"This is a significant AUKUS milestone and a proud moment for Australian industry.

"For the first time, Australian-made steel will be used in the construction of US Virginia-class submarines, demonstrating the world-leading capabilities of our manufacturing sector and the growing contribution Australian industry is making to allied defence capability.

"This is exactly what AUKUS is designed to achieve. With this initial order, the AUKUS program is creating tangible opportunities for Australian industry while lifting their technical standards. It is supporting local workers and businesses, and building the industrial capability that will underpin Australia's future nuclear-powered submarine enterprise."

(Aus DoD)