On February 25, 1902 John Holland (an Irish engineer) was granted a patent for a submarine. Holland developed the first submarine to be formally commissioned by the U.S. Navy, and the first Royal Navy submarine.

After reading read about the Battle of Ironclads during the American Civil War, Holland realized that the best way to attack such ships would be through an attack beneath the waterline. Battle of Ironclads was naval battle where ironclad warships, i.e. the USS Monitor and the CSS Virginia. were used. The battle received worldwide attention, and it had immediate effects on navies around the world. The preeminent naval powers, Great Britain and France, halted further construction of wooden-hulled ships.

Holland took a tangential, more challenging path and started work on submersible boat. Over next few years, he continued to improve his designs and worked on several experimental boats. He launched his submersible boaton 17 May 1897. This was the first submarine having power to run submerged for any considerable distance, and the first to combine electric motors for submerged travel and gasoline engines for use on the surface. The submarine was bought by US Navy.

Source: Wikipedia 

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