South Australian submarine battery manufacturer, PMB Defence, is partnering with BAE Systems United Kingdom in a deal that may see their technology used in the SSN-AUKUS submarine design.

The contracts between PMB and BAE Systems – valued at more than $34 million – will enable the potential integration of its advanced nickel zinc battery technology into the design of the future conventionally armed, nuclear-powered submarines. This contract is in addition to existing work being undertaken by PMB with the UK Ministry of Defence to test and qualify its battery technology for the UK’s Astute class submarines.

Nuclear-powered submarines generate the electricity needed to operate onboard systems using energy from their reactors. This power is also used to charge large batteries to support the operation of equipment and to serve as an independent backup energy source. Nickel zinc battery systems can offer approximately double the energy capacity of traditional lead acid batteries.

If successful through the design phase, it’s expected PMB’s innovative battery technology will be produced at the company’s Osborne facility.

PMB’s Chief Executive Officer Stephen Faulkner shared that the team are proud to announce their involvement in the SSN-AUKUS program, one of the most complex Defence programs in Australia’s history.

“This contract will drive further growth in our Adelaide-based team and expand our local supply chain as we move towards production,” said Mr Faulkner.

“The agreement also highlights the growing role of Australian industry in delivering advanced capability under the AUKUS partnership.”

PMB, which has produced the main storage batteries for the Collins class submarines since 1996, has already added 20 staff to its local workforce and is anticipating more growth to support the production requirements.

Chief Executive Officer at BAE Systems Australia, Craig Lockhart, said the organisation is committed to continuing to work with Australia companies like PMB for opportunities such as this.

“This enablement contract with PMB is an example of the industrial uplift efforts underway to maximise and accelerate Australian industry participation in trilateral nuclear-powered submarine programs,” said Mr Lockhart.

“Strong progress is being made on the detailed design phase of the SSN-AUKUS program, the workforce continues to grow, and strong collaboration is occurring between submarine build partners, the UK and Australian governments and industry.”

This agreement is a significant milestone in the AUKUS agreement, underscoring the importance of industry collaboration across the tri-lateral partnership to deliver future submarine capability.

The announcement follows news earlier in the year that PMB has been contracted to provide its new technology battery system to the US Navy.

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Image: BAE Systems Australia CEO, Craig Lockhart, and PMB Defence’s CEO, Stephen Faulkner, sign agreement at Indo Pacific 2025.