Australia Pledges US$2.8B for New Nuclear Submarine Facility

Australia has committed AU$3.9 billion (US$2.8 billion) as an initial investment for a new facility to build nuclear submarines under the AUKUS security pact with the United States and Britain. The announcement was made on Sunday.

The AUKUS pact aims to equip Australia with advanced submarines and foster cooperation in developing a range of defence technologies. The submarines, set to begin delivery in 2032, are central to Australia’s strategy to strengthen long-range strike capabilities in the Pacific, particularly in response to China.

The overall programme could cost Canberra up to US$235 billion over the next 30 years and includes technology to allow Australia to construct its own submarines in the future.

Defence Minister Richard Marles said the Osborne facility, near Adelaide, would be the hub of the nation’s nuclear submarine construction. Over the long term, the facility is expected to receive an estimated AU$30 billion in investment.

“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.” He added that the project would accelerate AUKUS opportunities while securing defence capabilities and creating long-term jobs and prosperity.

In September, Canberra announced a separate US$8 billion investment over a decade to transform a shipbuilding and maintenance precinct in Perth for a future fleet of nuclear-powered submarines.

The move follows a diplomatic rift with France in 2021, when Australia cancelled a multi-billion-dollar deal for diesel-powered submarines to join the AUKUS programme instead. The pact faced uncertainty last year when the US reviewed its alignment with former President Donald Trump’s “America First” agenda, but the Pentagon confirmed in December that the programme could proceed.