Australia announced an additional US$3.2 billion investment in its nuclear-powered submarine program under the AUKUS defence partnership. The funding aims to strengthen the country’s future naval capabilities and advance the long-term project.
The investment, worth A$4.6 billion, will support work at the Osborne shipyard in South Australia. Defence Minister Richard Marles said the funding demonstrates that the AUKUS partnership remains on schedule.
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Under the 2021 AUKUS agreement, Australia will receive three nuclear-powered submarines from the United States. Australia and Britain will later jointly develop a new class of submarines expected to enter service in the 2040s.
Meanwhile, the defence pact has faced scrutiny over production delays in the United States and Britain. Critics have questioned whether Australia will receive the submarines within the planned timeframe.
Moreover, Marles said the latest investment would help Australia develop the sovereign capability required to build, operate, maintain, and sustain its future submarine fleet. He described the funding as another important milestone for the program.
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Additionally, Australia confirmed that all three submarines supplied by the United States will now be operational vessels from the US Navy. The government said the revised arrangement is more cost-effective than the original plan.
Therefore, the AUKUS submarine program remains Australia’s largest defence project, with an estimated cost of US$250 billion over the next three decades. Canberra continues to present the initiative as central to its long-term defence strategy.