By the end of the 2030s, the three countries plan to provide Australia with nuclear-powered attack submarines under the Aukus pact.

China’s ambitions in the Indo-Pacific region are countered by the pact.

As a result of the deal, Beijing has strongly criticized the three countries.

“We are extremely proud of our role in delivering this crucial tri-nation submarine program,” said BAE Systems CEO Charles Woodburn.

The funding will cover development work until 2028, with manufacturing of the vessels expected to begin by the end of the decade. In the late 2030s, the first SSN-Aukus submarine will be delivered.

A British-designed submarine, the SSN-Aukus, will be used by both the UK and Australia.

As the Conservative party conference got underway in Manchester, UK defence minister Grant Shapps said, “This multi-billion-pound investment in the Aukus submarine programme will help deliver the hunter-killer submarine capability the UK needs in order to maintain its strategic advantage and secure its leadership position in a contested global order for the long term.”

The SSN-Aukus will eventually replace the Astute class, which BAE builds in Barrow-in-Furness, Cumbria, and will be the biggest, most powerful, and most advanced attack submarine ever operated by the Royal Navy.

More than 10,000 people are employed at the Barrow-in-Furness shipyard, where the agreement will provide decades of work.

More than 5,000 new employees will also be recruited as part of the deal, as well as significant investments at the site.

The company employs 39,600 people in the UK and has a global workforce of more than 93,000, according to its website.

As a result of the Aukus deal, other major UK defence contractors are also getting a boost.