The U.S. Department of Defense is considering using 1.85 billion USD in naval research and development funds, requested from Congress, to procure warships built in South Korea, Japan, and other countries.
On Monday, a White House Office of Management and Budget (OMB) official told Breaking Defense, a U.S. military news outlet that this 1.85 billion USD isn’t just for research. It’s intended for asset acquisition.
The official revealed that they are exploring a plan to have the hull, machinery, and electrical systems for two vessels manufactured in South Korea or Japan, while U.S. defense contractors would lead the combat system integration.
He specifically mentioned ongoing discussions with South Korean firms Hanwha, HD Hyundai, and Samsung Heavy Industries, as well as Japanese companies Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Japan Marine United (JMU) regarding potential shipbuilding contracts.
The OMB representative praised South Korea and Japan for their aggressive adoption of modernization and robotics technology, allowing for faster and more cost-effective production compared to the U.S. However, he stressed that overseas construction of U.S. Navy vessels is a temporary measure, emphasizing that foreign shipbuilders should ultimately invest in U.S. facilities.
The critical factor now is whether Congress will approve the budget. Some lawmakers are skeptical about utilizing foreign companies due to concerns over existing U.S. shipyard capacity.
Rep. Jared Golden (D-Maine) announced plans to introduce legislation prohibiting the use of funds for overseas production of U.S. Navy ships and components. He argued that at a time when American shipbuilders could face job losses, the military shouldn’t be looking to employ foreign workers.