To make the AUKUS partnership successful, the three partner nations will need to shift, as Defence Minister Richard Marles said in a speech in 2022, from interoperability to interchangeability.
Interchangeability goes beyond the ability to operate together; it means components and systems from different manufacturers and countries can be effortlessly swapped and integrated. It means any capability acquired by one of the AUKUS partners can be seamlessly introduced into service and operated by the others.
And to achieve this, we need our defence industrial bases to become a well-functioning ecosystem. Defence firms need to work closely with their defence departments and capability organisations and engage with universities and one another. This applies to primes and to small and medium enterprises.
Moving from interoperability to interchangeability is not a distant aspiration; it is an immediate necessity. By adopting an ecosystem approach, reforming export controls, and empowering our workforce, we can forge a defence industrial base that is both resilient and flexible.
Take for example, nuclear powered submarines (SSNs). Our firm, QinetiQ, leads on the test and evaluation and operational assurance of British submarines, and our ranges and skills are being adapted to also provide UK regional assurance for visiting United States SSNs and, eventually, Australia’s.
This can accelerate Australia’s acquisition of capabilities in test and evaluation and in training and mission rehearsal—not only for Australian SSNs but also to enhance interoperability for each nation’s SSN deterrence capabilities.
We recently announced the formation of Team TECSA, a collaborative initiative bringing together industry and academia to address Australia’s requirement for test and evaluation, certification and systems assurance.
This task is beyond the capacity of any single company, making collaboration across the entire defence ecosystem essential.
Interchangeability also raises the question of where we can augment our supply chains and create efficiencies. The progress made in the guided weapons and explosive ordinance enterprise is an example of establishing Australia as a reliable second source for critical munitions.
There are also opportunities in critical minerals, quantum computing, AI and in vital components as diverse as ball bearings and rocket motors.
In the same way that Australia has been a major beneficiary and a key market for the US defence industry, opportunities are emerging for Australian businesses to play a bigger role in supporting US defence production.
Take for example, the Australian Department of Defence’s Global Supply Chain (GSC) initiative. In the past, Australian companies were able to access niche opportunities in the US. Under AUKUS, the objective is to seamlessly integrate Australian industrial knowhow into a common market.
We are talking about a new wave of opportunity for Australian businesses that is unprecedented.
A critical enabler of this vision is export control reform. Export controls serve as the rules of engagement in our industry, ensuring that technology and information flow securely and responsibly across borders. Reforming these controls is crucial to facilitate true industry interoperability.
By harmonising export regulations, we create an environment in which defence partners can share technology and collaborate without unnecessary barriers. This reform not only strengthens alliances but also accelerates innovation by providing access to a broader range of resources and expertise.
Much progress has been accomplished since Marles’s declaration of intent two years ago. These reforms are the foundations of our enhanced partnership. They form the high external walls needed to protect the most sensitive information and technology that is the lifeblood of our sector and lower the internal walls to foster co-operation and innovation.
There is still work ahead of us to realise the aspiration for an AUKUS defence industry free-trade zone, allowing for seamless collaboration by commercial, industrial and research entities from all three nations.
None of these advances can happen without addressing our most valuable asset—our workforce.
Our people are the driving force behind innovation and transformation. To achieve interchangeability, we must harness their full potential and address the gaps in skills and capabilities.
Fostering the best possible talent pipeline is not solely the job of our governments.
It requires policymakers, defence forces, industry, universities and unions to do their part.
QinetiQ runs a sovereign skills program that transfers our employees from Australia to Britain to participate in live test and evaluation environments. This knowledge transfer ensures our employees learn about QinetiQ’s global test and evaluation and threat mission rehearsal capabilities so that they return to provide the skills needed to meet Australia’s defence priorities.
By investing in training programs and cross-border collaborations, the defence industry can ensure that our workforce is equipped to tackle the challenges of tomorrow. This exchange of expertise enriches our collective knowledge base, making us more adaptable and proficient.
A world where defence equipment can be quickly adapted to meet the evolving demands of modern warfare, regardless of its origin, requires us to transcend traditional boundaries. It demands open standards, common platforms and aligned objectives across nations.
This is no longer about competition between our countries; instead, it is about ensuring that the sum of our parts is greater than if we acted alone. Our strategic circumstances demand this new approach.
