Future Australia submarines could be built in UK as part of AUKUS.

According to information published by Sky News on February 14, 2023, the Australian Defence Strategic Review indicates that some AUKUS submarines could be built in the United Kingdom.
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Secretary of Defense Lloyd J. Austin III tours the Virginia-class submarine USS Mississippi (SSN 782) with Australian Minister of Defense Richard Marles. (Picture source: US DoD)

AUKUS is a trilateral security pact announced on 15 September 2021 between Australia, the United Kingdom, and the United States for the Indo-Pacific region.

The pact aims to assist Australia in acquiring nuclear-powered submarines, and also includes cooperation on advanced technologies such as cyber, artificial intelligence, and quantum technologies, among others.

In 2016, Australian Prime Minister Malcolm Turnbull signed a A$50 billion deal with Naval Group (formerly known as DCNS) to develop a new generation of submarines, called the Attack class, which would replace the Collins class submarines.

The design of the Attack class was based on the French Barracuda class nuclear-powered attack submarine but had to be modified for conventional propulsion. It has experienced delays and cost overruns, causing uncertainty and tension.

The cancellation of the Attack-class submarine project was officially notified to the French government only a few hours before it was publicly announced.

The project was expected to employ 4,000 people in France over six years, including at Naval Group and its subcontractors. The French government was upset about both the cancellation of the project and not being informed of the negotiations that led to the AUKUS agreement. French Foreign Minister Jean-Yves Le Drian described the termination of the contract as a "stab in the back" in a radio interview.