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Australia has committed USD 2.76 billion, or AUD 3.9 billion, to advance construction of a nuclear submarine shipyard at Osborne in South Australia under the AUKUS defence pact with the US and the UK. The funding will support infrastructure development at the site, which will eventually build Australia's nuclear-powered submarines. The project forms part of Australia's largest-ever defence investment, with total shipyard costs estimated at AUD 30 billion over coming decades. Until new construction begins, the facility will maintain the existing Collins-class submarine fleet.
Australia has committed USD 2.76 billion, equivalent to AUD 3.9 billion, to advance the construction of a major shipyard that will support the country's nuclear-powered submarine programme under the AUKUS defence partnership with the United States and the United Kingdom. The funding is aimed at accelerating work on the submarine construction yard at Osborne, near Adelaide in South Australia, which will play a central role in delivering the next generation of submarines for the Royal Australian Navy. Advertisement
The investment is part of the broader AUKUS agreement announced in 2021, which represents Australia's largest defence commitment to date. Under the arrangement, US-operated Virginia-class submarines are expected to be stationed in Australia from 2027. Australia is also set to acquire several Virginia-class submarines from the United States from around 2030, followed by the joint development of a new class of AUKUS nuclear-powered submarines by Britain and Australia.
Prime Minister Anthony Albanese said the AUD 3.9 billion allocation would act as an initial payment towards delivering the Osborne shipyard. He noted that strengthening the submarine construction yard was essential to Australia's plan to field conventionally armed, nuclear-powered submarines. Official estimates place the total cost of developing the shipyard at around AUD 30 billion spread over the coming decades, highlighting the long-term nature of the programme.
The Osborne facility is designated as the site where Australia's ASC and the UK-based defence major BAE Systems will jointly build Australia's nuclear-powered submarine fleet, which forms the core of the AUKUS pact. Until construction of the new submarines begins later in the decade, the shipyard will continue to be used for maintaining Australia's existing Collins-class submarines, ensuring continuity of operations.
South Australian Premier Peter Malinauskas said the current funding would be directed towards developing enabling infrastructure required for the shipyard's expansion, indicating that further investment would follow as the project progresses.
The announcement comes against the backdrop of a Pentagon review released late last year, which examined the AUKUS programme and identified opportunities to strengthen the partnership. The review highlighted the need for Australia to move swiftly in building its nuclear submarine capability to keep the long-term project on track.
Source Reuters
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