Australia commits AU$3.9 billion to nuclear submarine construction under AUKUS

Australia on Sunday announced AU$3.9 billion (about $2.8 billion) in funding as an initial investment toward a new facility that will build nuclear-powered submarines under the AUKUS security partnership with the United Kingdom and the United States.

The funding will support development of the Submarine Construction Yard at Osborne, near Adelaide. Prime Minister Anthony Albanese said the investment was vital for delivering Australia’s conventionally armed, nuclear-powered submarines, describing it as a crucial step in strengthening the country’s long-term defence capabilities.

In the longer term, the government expects total spending on the Osborne facility to reach roughly AU$30 billion. The submarines — central to Australia’s strategy of boosting long-range deterrence and strike capacity in the Indo-Pacific — are scheduled to begin arriving from the United States in the early 2030s.

The broader AUKUS programme, which also includes cooperation on advanced military technologies, could cost Canberra up to $235 billion over three decades. In addition to acquiring submarines, the agreement provides Australia with the technological foundation to construct its own vessels domestically in the future.

Defence Minister Richard Marles said the Osborne yard would play a pivotal role in building a sovereign submarine capability.

“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.

Australia’s pursuit of nuclear-powered submarines under AUKUS follows its dramatic 2021 decision to scrap a multi-billion-dollar contract with France for diesel-powered submarines, a move that triggered a major diplomatic dispute with Paris.