Australia commits $2.76 billion to advance nuclear submarine shipyard

Australia announced on February 14 that it will allocate A$3.9 billion ($2.76 billion) to advance construction of a shipyard supporting the delivery of nuclear-powered submarines under the trilateral AUKUS defense pact with the United States and the United Kingdom.

Prime Minister Anthony Albanese described the A$3.9 billion allocation as an initial investment to establish the new shipyard in Osborne, a suburb of Adelaide in South Australia, Caliber.Az reports per foreign media.

“Investing in the submarine construction yard at Osborne is critical to delivering Australia's conventionally-armed, nuclear-powered submarines,” he said. Official estimates place the total cost of the shipyard at A$30 billion over the coming decades.

The Osborne facility will host the joint efforts of Australia’s ASC and Britain’s BAE Systems to build Australia’s nuclear-powered submarine fleet, a central element of the AUKUS pact. Before construction begins later this decade, the shipyard continues to handle maintenance for the existing Collins-class submarine fleet.

South Australian Premier Peter Malinauskas said the initial funding will go toward building the necessary infrastructure to support the shipyard. 

“This is just the beginning,” he said. In December, a Pentagon review of the AUKUS project identified opportunities to ensure the agreement progresses on the “strongest possible footing,” including accelerating Australia’s development of nuclear submarine capabilities.

The AUKUS agreement, unveiled in 2021, represents Australia’s largest-ever defense investment. It envisions US-commanded Virginia-class submarines stationed in Australia from 2027, sales of several Virginia-class submarines to Australia starting around 2030, and a joint effort by Britain and Australia to develop a new class of nuclear-powered submarines.

By Jeyhun Aghazada