Minister: Australia’s nuclear submarine deal "on track" despite US scrutiny

On June 12, Australia’s Defence Minister Richard Marles downplayed worries that the trilateral agreement between the U.S., Australia, and Britain to supply Australia with nuclear-powered submarines might be at risk, despite reports that the Pentagon had ordered a review of the deal.

Speaking to Sky News Australia, Marles said he had been aware of the Pentagon’s review for “some time” and described it as a “very natural step for the incoming administration to take.”

He emphasised that the UK government had also conducted its own review of the agreement following its election, and that Australia’s government had similarly examined it as part of a broader evaluation of the country’s defence strategy.

“I believe it’s entirely within the rights of a new government to review this, and we welcome it and will cooperate fully,” Marles stated.

The $200 billion-plus deal, formalised in 2021 under President Joe Biden’s administration, aims to enhance Australia’s maritime strength to better counter China’s expanding naval power. It includes the U.S. selling Virginia-class submarines to Australia as an interim measure while the jointly developed nuclear submarines are being constructed.

In January, Australia initiated the first of six $500 million instalments to the U.S. under the AUKUS agreement, intended to support U.S. submarine production capabilities.

Marles recently met with U.S. Defence Secretary Pete Hegseth during a defence conference in Singapore less than two weeks ago. Afterwards, Marles told reporters he left the meeting with “a sense of confidence about how AUKUS is progressing.”

“AUKUS is on schedule, and we are meeting all associated timelines,” he said. “We are very optimistic.”

While Hegseth’s speech at the conference frequently referenced cooperation with Australia, it notably did not mention AUKUS explicitly, though he brought up the deal during the question-and-answer session. He also called on Indo-Pacific allies to boost their defence budgets and highlighted the importance of “a strong, resolute, and capable network of allies and partners” as the U.S. works to counter China’s influence.