The US has approved the first major submarine contract under the Aukus security deal.
The £145.5million contract was announced on Thursday, with American firm Electric Boat securing the deal and Australia footing the bill.
The agreement will cover "support engineering, technical, design agent and design transfer activities" from the United States.
This development comes at a time when certain aspects of the Aukus partnership are under political scrutiny in the UK.
The 2021 Aukus agreement established a framework for Australia to obtain nuclear-powered submarines.
It was backed by both Britain and the United States.
Beyond the submarine programme, the trilateral pact encompasses broader collaboration on advanced military technologies between the three nations.
The newly approved contract specifically covers technical and engineering support from the American side, facilitating the transfer of crucial design expertise to Australia.
A US Virginia-class nuclear-powered attack submarine arrived at HMAS Stirling naval base in Perth last year
|GETTY
This represents the first substantial financial commitment to materialise from the landmark security arrangement.
The deal has been positioned as a cornerstone of Western defence strategy in the Indo-Pacific region.
Baroness Eluned Morgan, the Welsh First Minister, has called on the UK Government to suspend its participation in a separate Aukus-linked initiative earlier this month.
She said: "I believe in international alliances, I believe in collective security, but there is a clear difference between standing with our partners and giving a free pass to a US president who has threatened war crimes and shown contempt for our country."
LATEST DEVELOPMENTS
Infographic showing a US Virginia-class nuclear submarine, plus a delivery schedule to Australia under the 2021 AUKUS agreement
|GETTY
Lady Morgan specifically targeted the Deep Space Advanced Radar Capability programme, which aims to establish a global network for monitoring objects in space.
She added: "I'm urging the UK Government to halt our involvement in the Aukus radar project until we can be confident those partnerships reflect our values, and our security interests."
The Darc programme will see radar installations developed across Australia, the United States and Britain, enabling round-the-clock surveillance of space regardless of weather conditions.
Cawdor Barracks in Pembrokeshire is set to host the primary UK contribution to this initiative, with Britain's involvement described as "crucial" to the project's overall success.
US Secretary of War Pete Hegseth, Australian Deputy Prime Minister and Defence Minister Richard Marles, and Britain's Defence Secretary John Healey deliver remarks during the annual AUKUS Defence Ministers' Ministerial at the Pentagon in Washington
|GETTY
Sir Keir Starmer’s political spokesman said at the time: "The Deep Space Advanced Radar Capability programme will secure long-term jobs in Pembrokeshire, Wales and help protect essential satellite communication and navigation works.
"We’re engaging with the local community on proposals to redevelop Cawdor Barracks to host Darc, which will be operated by UK personnel.”
The contract announcement follows a US review of the Aukus agreement concluded in late 2025, which sought to ensure the partnership's longevity and alignment with the President's 'America First' agenda.
Defence Secretary John Healey subsequently confirmed that Aukus was proceeding "full steam ahead" following discussions between London and Washington.
Our Standards: The GB News Editorial Charter