Sharecast - The funding follows the AUKUS announcement in March by the leaders of Australia, the UK and the United States. This will eventually see Australia and the UK operate SSN-AUKUS submarines.
BAE said that having started early design work in 2021, the funding will cover development work to 2028, enabling it to move into the detailed design phase of the programme and begin to procure long-lead items.
The award will also fund significant infrastructure investment at BAE Systems (LON:BAES)' site in Barrow-in-Furness, investment in its supply chain and recruitment of a more than 5,000 people, the company said.
Chief executive Charles Woodburn said in a statement on Sunday: "We’re incredibly proud of our role in the delivery of this vitally important, tri-nation submarine programme. This funding reinforces the Government’s support to our UK submarine enterprise and allows us to mature the design, and invest in critical skills and infrastructure to support our long-term national security."
Babcock (LON:BAB) also said on Sunday that it had signed a five-year contract with the MoD to provide input into the design.
The company's CEO, David Lockwood, said: "Babcock plays a critical role in submarine programmes, supporting submarine availability in the UK and internationally. The importance of applying our extensive knowledge and long-standing experience is being recognised through this contract award to ensure that the new Class delivers the operational availability through life that the Royal Navy requires."
