IAEA to inspect future nuclear-powered submarines built in Australia

The Aukus deal exploits a loophole in the 1968 Nuclear Non Proliferation treaty that allows nuclear fuel used for non-explosive military uses like naval propulsion to be exempted from IAEA inspections.

As one of the ways of limiting the possibility that fissile material could be diverted to making weapons, highly enriched uranium (HEU) will be delivered to Australia in welded power units which would be installed in submarines to be assembled by Australia and ready by the 2040s.

Grossi said that in negotiations with Australia, the IAEA would insist that its inspectors would be allowed to check the amount of nuclear fuel in the sealed units before and after the submarines put out to sea.

Arms control advocates have generally welcomed the precautionary measures adopted by the Aukus partners, but have expressed concern that the precedent it sets could encourage other states to use the NPT loophole potentially to use the pretext of developing nuclear naval propulsion as a way of hiding work on weapons.