The government of Australia has committed 3.9 billion Australian dollars (around $2.8 billion) as an initial funding allocation for a new nuclear submarine construction facility under the AUKUS trilateral security framework with the United Kingdom and the United States.
AUKUS aims to provide Australia with cutting-edge nuclear-powered submarines sourced from the United States beginning in 2032, while also enabling joint development of advanced military technologies. The submarines are central to Australia’s strategy of strengthening long-range strike and deterrence capabilities across the Pacific region.
The broader agreement could total as much as 235 billion Australian dollars over 30 years, including technology transfer arrangements that would allow Australia to build its own submarines in the future.
Defense Minister Richard Marles stated that the primary construction hub will be established at Osborne, near Adelaide. Long-term development of the facility is projected to require about 30 billion Australian dollars.
In addition, Canberra has committed 8 billion Australian dollars over a decade to modernize shipbuilding infrastructure in Perth, Western Australia, transforming it into a sustainment and support center for the future submarine fleet.
The AUKUS decision followed Australia’s 2021 termination of a major submarine contract with France, a move that caused significant diplomatic friction. The pact’s future was briefly questioned when the United States initiated a review to determine whether it aligned with the policy priorities of then-President Donald Trump. By December, the Pentagon announced that the program had been approved to move forward without restriction.
