Rolls-Royce has landed its largest-ever Ministry of Defence contract, worth £9 billion, to produce nuclear submarine reactors for the Royal Navy. The landmark deal, known as Project Unity, will create over 1,000 new jobs while protecting 4,000 existing positions across the UK.
Under the agreement, Rolls-Royce Submarines will design, manufacture, and maintain nuclear reactors powering Britain's submarine fleet. The contract consolidates previous arrangements and is expected to save £400 million over its eight-year duration through improved efficiency measures.
Defence Secretary John Healey emphasized the contract's importance for national security, describing the nuclear deterrent as "ultimate insurance in a more dangerous world." The UK has maintained continuous at-sea nuclear deterrence since 1969, with at least one nuclear-armed submarine always on patrol.
The deal supports the government's "triple lock" nuclear strategy, which includes constructing four new Dreadnought class submarines at Barrow-in-Furness. Steve Carlier, President of Rolls-Royce Submarines, noted that the long-term agreement enables strategic investment in skills and facilities.
To support the expanded operations, Rolls-Royce has already launched a nuclear skills academy in Derby, offering 200 apprenticeships annually. The company is also expanding its Raynesway site and establishing new facilities at Pride Park.
The contract builds upon Rolls-Royce's involvement in the AUKUS partnership between the UK, US, and Australia, announced in 2023, where the company will supply reactors for Australia's new nuclear submarine fleet.
Chris Gardner, CEO of the Submarine Delivery Agency, highlighted the agreement's role in enhancing the effectiveness of Britain's defence nuclear enterprise and supporting Royal Navy submarines both now and in years to come.