BAE Systems awarded contract for AUKUS submarines

Britain's BAE Systems has been awarded a contract worth billions of dollars to undertake the next phase of the AUKUS nuclear-powered submarine program.

In this photo provided by U.S. Navy, the Virginia-class fast-attack submarine USS Missouri (SSN 780) departs Joint Base Pearl Harbor-Hickam for a scheduled deployment in the 7th Fleet area of responsibility, Sept. 1, 2021.

British arms, security, and aerospace company BAE Systems says it has been awarded STG3.95 billion ($A7.5 billion) by Britain's defence ministry for the next phase of the AUKUS nuclear-powered submarine program.

Advanced attack submarines for the Royal Navy will be built at the company's site in Cumbria, northwest England, BAE Systems said on Monday.

Having started early design work in 2021, the funding will cover development work to 2028, enabling BAE Systems to move into the detailed design phase of the program and begin to procure long-lead items.

Manufacturing will start towards the end of the decade with the first submarine due to be delivered in the late 2030s.

The award will also fund infrastructure investment at BAE Systems' site. The new funding follows the AUKUS announcement in March by Australia, Britain and the US.

This will eventually see Australia and Britain operate the submarines.