Rolls-Royce has secured a monumental £9 billion contract with the UK Ministry of Defence, marking its largest deal ever, to produce nuclear submarine reactors for the Royal Navy.

This eight-year contract, known as 'Unity', encompasses the development, production, and maintenance of nuclear reactors, specifically pressurized water reactors (PWRs) that utilize uranium to generate electricity.

The agreement is expected to create over 1,000 new jobs and safeguard an additional 4,000 roles in the UK, aligning with the government's focus on economic growth since returning to power in July 2024.

Defense Minister John Healey emphasized that this investment not only supports high-skilled employment but also reinforces the UK's commitment to maintaining a nuclear deterrent in a precarious global landscape.

The UK government has reiterated the importance of maintaining a maritime deterrent available 24/7 to protect both the UK and its NATO allies.

Most suppliers involved in this project are based in the UK, which will strengthen the national supply chain and foster better supplier relationships.

This contract is a strategic move to enhance the Royal Navy's capabilities amid rising tensions with Russia, reflecting a broader commitment to national security.

Steve Carlier, president of Rolls-Royce Submarines, noted that the contract reinforces the UK's support for the Royal Navy and the nuclear defense industry, facilitating essential investments in skills and facilities.

The military expansion, including this contract, aims to stimulate the economy by creating jobs and enhancing national security in the long term.

The Unity contract simplifies previous agreements, promoting cost-efficient production and is projected to save taxpayers over £400 million over its duration.

The deal is expected to bolster the UK's nuclear expertise, addressing growing demands in both defense and civilian sectors.

Ultimately, the contract supports the construction of four new nuclear submarines in Barrow-in-Furness, Cumbria, ensuring a continuous at-sea deterrent as part of the UK's 'triple lock' nuclear strategy.