Rolls-Royce has secured a historic £9 billion defence contract with the UK Ministry of Defence to design, manufacture, and maintain nuclear reactors for the Royal Navy’s submarines.
Historic Agreement to Power UK’s Submarine Fleet
Rolls-Royce Submarines Ltd has signed a groundbreaking £9 billion (€10.67 billion) contract with the UK Ministry of Defence. Under the deal, Rolls-Royce will design, manufacture, and maintain nuclear reactors for the Royal Navy’s submarine fleet, including the cutting-edge Dreadnought Class submarines.
The agreement, called the Unity contract, spans more than eight years and marks the largest defence contract ever awarded to Rolls-Royce. It is expected to create over 1,000 new jobs and safeguard 4,000 existing positions, boosting the UK economy while strengthening national security.
Strengthening Defence Capabilities Amid Global Challenges
Steve Carlier, president of Rolls-Royce Submarines, emphasized the importance of the deal for the company and the nation. “This long-term contract enables us to invest in skills, equipment, and facilities to protect UK interests both at home and abroad,” Carlier said.
The Unity contract fosters collaboration between Rolls-Royce and the Ministry of Defence, enhancing the design and operational support of reactor technology. Amid growing geopolitical tensions, this agreement positions the UK as a leader in advanced defence technology.
Sir Chris Gardner KBE, CEO of the Submarine Delivery Agency (SDA), described the deal as a “key milestone” in the SDA’s partnership with Rolls-Royce. Gardner highlighted the contract’s role in building resilience and efficiency across the Defence Nuclear Enterprise. He added that it provides Rolls-Royce with long-term stability to plan for future workforce and technological advancements.
Boosting Economic Growth Through Defence Investment
The Unity contract comes at a time when Western nations are increasing defence spending due to escalating global security concerns. US President Donald Trump has urged NATO members, including the UK, to allocate at least 5% of their GDP to defence budgets.
UK Defence Secretary John Healey praised the agreement as a strategic investment in Britain’s future. “This deal delivers significant benefits for our economy and ensures the Royal Navy has the capabilities to keep us safe,” Healey said.
Healey noted that the contract aligns with the UK’s upcoming defence industrial strategy, which prioritizes high-skilled jobs and innovation. “Defence can be a powerful engine for economic growth while delivering better value for taxpayers,” he added.
This historic contract reaffirms the UK government’s commitment to maintaining a robust defence strategy and ensuring technological innovation. Rolls-Royce’s leadership in reactor technology will play a crucial role in safeguarding national security and driving economic growth in the years to come.
