Australia's Investment in Nuclear-Powered Submarine Infrastructure

Australia has announced a significant investment of A$3.9 billion ($2.76 billion) to advance the construction of a shipyard aimed at supporting the delivery of nuclear-powered submarines under the AUKUS defence pact with the U.S. and Britain.

About AUKUS Defence Pact

• Announced in 2021, representing Australia's largest-ever defence investment.
• Plans include: 
  1. U.S.-commanded Virginia-class submarines to be based in Australia from 2027.
  2. Several Virginia submarines to be sold to Australia around 2030.
  3. Britain and Australia to build a new class of AUKUS nuclear-powered submarines.

Shipyard Development in Osborne

• Prime Minister Anthony Albanese referred to the A$3.9 billion as a "down payment" for the new shipyard in Osborne, Adelaide, South Australia.
• The shipyard is crucial for delivering Australia's conventionally-armed, nuclear-powered submarines.
• Total projected cost of the build is A$30 billion over the coming decades.

Construction and Maintenance

• Osborne will be the joint build site for Australia's nuclear-powered submarine fleet by Australia's ASC and Britain's BAE Systems.
• Current focus on maintenance of the existing Collins-class submarine fleet until construction begins later this decade.

Comments from Officials

• South Australian Premier Peter Malinauskas highlighted the down payment's role in building enabling infrastructure for the shipyard.
• Malinauskas emphasized that this is just the beginning of the project's development.

Pentagon Review

• A Pentagon review in December identified opportunities to strengthen the AUKUS deal.
• Recommendations included ensuring rapid development of Australia's nuclear submarine capacity.