Australia has announced an initial investment of 3.9 billion Australian dollars ($2.8 billion) toward construction of a new nuclear submarine production facility under the AUKUS agreement with the United States and the United Kingdom.
The funding will support development of a shipyard complex in Osborne, near Adelaide, which will serve as the central hub for Australia’s future nuclear-powered submarine fleet. Defense Minister Richard Marles said the facility will play a pivotal role in delivering the country’s long-term undersea capability.
The broader AUKUS submarine program could cost as much as AUD 235 billion over 30 years. The plan includes the acquisition of US submarines beginning in 2032, along with technology transfers enabling Australia to construct its own vessels domestically. Long-term investment in the Osborne facility alone is projected to reach approximately AUD 30 billion.
In addition, Canberra has committed AUD 8 billion over the next decade to upgrade shipbuilding and maintenance infrastructure in Perth, Western Australia, to support the future fleet.
Australia shifted to the AUKUS arrangement in 2021 after canceling a major diesel-submarine contract with France. The pact faced scrutiny last year when Washington launched a policy review, but the Pentagon later confirmed the program would proceed.
