Australia on Sunday unveiled AU$3.9 billion (US$2.8 billion) in spending as an initial investment in a new facility to build nuclear-powered submarines under the AUKUS security pact with the United States and Britain.
The tripartite AUKUS pact is intended to equip Australia with a fleet of advanced submarines and support collaboration on broader defence technologies. The submarines, which are due to be delivered from 2032, are central to Canberra’s strategy to enhance long-range strike capabilities in the Pacific, particularly in the face of China.
The overall programme could cost up to US$235 billion over 30 years, including technology for Australia to construct its own vessels in the future. Defence Minister Richard Marles said the Osborne facility near Adelaide would form the hub of the project, with around AU$30 billion expected to be spent there over the long term.
“The transformation underway at Osborne shows Australia is on track to deliver the sovereign capability to build our nuclear-powered submarines for decades to come,” Marles said.
Prime Minister Anthony Albanese described the investment in the submarine construction yard as “critical to delivering Australia’s conventionally armed, nuclear-powered submarines” and said it would create jobs and long-term prosperity for the state.
In September, Australia also announced US$8 billion over ten years to transform shipbuilding and maintenance facilities in Perth for a future nuclear-powered submarine fleet.
The AUKUS plan replaced a cancelled multi-billion-dollar deal with France in 2021 to acquire diesel-powered submarines, sparking a diplomatic rift with Paris. The programme’s continuation had been uncertain after Washington in June said it would review the pact under President Donald Trump’s “America First” policies. In December, the Pentagon confirmed approval to proceed, with Trump giving the directive to go “full steam ahead”.
