A new shipyard, nuclear-powered submarines, and a decades-long investment — Australia doubles down on AUKUS.
Australia will spend A$3.9 billion ($2.76 billion) to advance construction of a new shipyard that will underpin its nuclear-powered submarine program under the AUKUS defense pact with the United States and Britain, Prime Minister Anthony Albanese announced Sunday.
The funding will support development of a major submarine construction yard at Osborne, near Adelaide in South Australia. Albanese described the investment as a “down payment” toward a project expected to cost around A$30 billion over coming decades.
AUKUS, unveiled in 2021, represents Australia’s largest-ever defense investment. Under the agreement, U.S.-commanded Virginia-class submarine vessels will rotate through Australian bases beginning in 2027. From around 2030, several of those submarines are expected to be sold to Australia. Britain and Australia will later jointly develop and build a new class of nuclear-powered submarines.
The Osborne site, where Australia’s ASC and Britain’s BAE Systems will collaborate, will serve as the hub for future submarine construction. Until full production begins later this decade, the facility will continue maintaining Australia’s aging Collins-class fleet.
South Australian Premier Peter Malinauskas said the initial funding would go toward enabling infrastructure for the expanded yard, calling it only the beginning of a broader transformation.
The announcement follows a recent Pentagon review that identified areas to strengthen the AUKUS program, including ensuring Australia accelerates development of its nuclear submarine industrial capacity.
The move underscores Canberra’s long-term commitment to deepening strategic ties with Washington and London, as regional security competition intensifies in the Indo-Pacific.
