The UK government has awarded Rolls-Royce a significant contract valued at £9 billion (approximately $11 billion) for the design and manufacture of nuclear reactors to power its submarine fleet. This eight-year contract, known as "Unity," aims to enhance the Royal Navy's nuclear capabilities and is part of the Labour government's strategy to reinforce the UK's nuclear deterrent under Prime Minister Keir Starmer.

Rolls-Royce will not only design and manufacture the reactors but will also provide ongoing support services for these nuclear systems.

The deal is anticipated to boost British business and national security, with Defence Secretary John Healey emphasizing its role in delivering long-term benefits for the economy and taxpayers.

The Unity contract is expected to generate over 1,000 new jobs and preserve an existing 4,000 positions within the UK.

This initiative aligns with the UK’s commitment to maintaining continuous at-sea deterrence, ensuring that at least one nuclear-armed submarine is operational at all times. It also supports the AUKUS defence partnership with the US and Australia.

This contract marks a pivotal investment in Britain's defence infrastructure, allowing Rolls-Royce to enhance its manufacturing capabilities in Derby, where it plans to nearly double production capacity to meet increasing demands from the Royal Navy.

Reuters